The story in WSJ covers a former Wells Fargo employee who is now working for the other side. Sounds a little like the former revenue agent starting a company to do battle with the government. It signals to me that if the former employees are even going into business to profit from the mistakes of banks, the problem is for real.
The evidence continues coming out revealing that the banks have dug themselves a deep hole and have yet to see any reason to not keep pushing forward aggressively in spite of their fraudulent activity.
Who in their right mind would start a company to do such tedious work if they didn't have a reasonable idea it would bring a nice payoff? A person who knows the business and has seen things from the inside.
Here is the open to the story by Ruth Simon
URBANDALE, Iowa—In two squat, suburban office-park buildings here, Richard Barrent is digging through loan files that could help decide who pays for the mortgage-paperwork debacle.
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The former Wells Fargo & Co. quality-assurance manager's two-year-old company is part of a cottage industry of loan detectives obsessed with detecting fraud, misrepresentations and violations of underwriting guidelines. Such discoveries can be used as ammunition to force banks and other lenders to buy back loans from bond insurers, holders of mortgage-backed securities and other customers of forensic loan-review firms.
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"There is a growing interest across the board" for such reviews, says Charles Cacici, managing member of Risk Management Group, a Brooklyn, N.Y., company that also scours mortgage files for problems. Competitors include Digital Risk, Clayton Holdings and Allonhill.
The full story is posted here on More financial Reality.
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