Lax Lending Standards Led to IndyMac’s Downfall

[Riick]

Calling IMB management corrupt ....is like saying an Ocean is damp.

Make the Deal!
~~Make the Deal!
~~ ~~Make the Deal!

 

[Vernon Martin]

If allowed to pick their own appraisers when they have an interest in preserving their jobs, they should have picked the best appraisers. Instead they were picking them to support deals they knew were "wormy" in the first place and hoping the market would bail them out down the road.

The loan officers made up for their almost planned unemployment through commissions on the loans they made. I saw loans up to $30 million there. Even the senior credit officer for the homebuilder group was on commission. People were getting rich (except me).

It surprises me that the OTS allowed the practice of loan officers ordering appraisals to continue after I blew the whistle on it back in 2002. The OTS certainly took other actions to clean house there. I think we're going to see indictments against some high profile appraisal firms as a result of this, but I won't name them yet. I'll just wait for the press releases.

 

[Terrel L. Shields]

. I think we're going to see indictments against some high profile appraisal firms as a result of this, but I won't name them yet.

I hope we are that lucky.

 

[Joyce Potts]

What happened to the checks and balances, especially those that head up the appraisal department at IndyMac?

Wha happen'd?