Presidential Nominee of MBA Charged With Fraud

[JRS at OBX]

Presidential Nominee of MBA Charged With Fraud

What do you want to bet he wins the election!!

 

[Non Sequitur]

John Courson, slated to become the president of the Mortgage Bankers Association of America at year’s end, stands accused in a civil lawsuit of defrauding 11 former branch managers and embezzling $879,000 as his California-based brokerage collapsed in 2007. In a separate lawsuit filed last year, Courson was accused of misappropriating $1.6 million by now-defunct Lehman Brothers Bank.

"Few members of the mortgage industry are more respected than John, as he brings to MBA a wealth of experience, both in terms of business knowledge, and political and advocacy skills," said Kempner of Courson when the MBA's announced the transition in July.

This I believe and I am sure he's sharing his knowledge on how he jacked his employees and a large multi-national banking/brokerage firm.

When asked about whether the MBA was aware of the allegations against Courson when it hired him, chairman Kieran Quinn issued a written statement saying the defendant was “very forthcoming about all the details surrounding the closing of Central Pacific Mortgage."

And here's proof he's sharing his experience!

This is why I'm against the bailout. All it does is help scumbags like John Courson and firms like Lehman Brothers Bank who allow and reward this behavior.

 

[JSmith43]

I don't know a darned thing about this guy or this case. But I would like to share with you stories of honest mortgage brokers, near as I can tell.

I know three of them that owned medium sized local companies. Independently, I heard the war stories. Here is probably what went down all over the country, but my report is form my little corner of the country.

As the market slowed, some noteworthy large lenders got into trouble. The first to throw under the bus was their wholesale channel. All of a sudden creative file reviewer eyes got extra sharp as did the "eat this loan" requests.

Even files that were reviewed and initially accepted by the investor's own UW's were rejected after delivery. You have all experienced last minute UW stipulations. This was an UW holy war of stipulations and buy back requests.

The small MB's have about as much bargaining power as a PC owner has to negotiate the shrink wrap license language when buying Microsoft products (or name any other large software vendor) on line. Your mileage may vary. Click the Agree box or you don't get the software.

These wholesale accounts had been well behaved and predictable until the mother ship got into $$ trouble. That is when the multiple personalities emerged.

Those of you that think MB's are the source of all evil, just haven"t looked up the hill high enough from whence it rolls.

Example: It wasn't a MB that introduced option ARMS with negative amortization to the masses and then marketed the heck out of them through their wholesale account reps.

This guy may be a poster child for the financial mess, but you'd have to dig deep to know for sure. There was a lot of crap rolling down hill and quickly. Being out of sync 1.6 million is peanuts compared to the loan volume. During the good times there were quite a few LO's writing that much per week.

Sub-prime investors went out of business, it seemed like over night. Warehouse lines of credit were yanked without cause, closings got screwed up left and right. Even A paper wholesale lines started acting that way. I will not name names. The small fish might well have as many or more potential legal counter claims. But, no way, do the small fish have the legal staff to fend off such attacks.

All I am saying, is that justice should be done, but that finding the truth ain't going to happen on any particular thread on a public forum, unless by pure luck.

 

[Couch Potato]

Fitting.

Sounds like he fits that job to a tee.

My thoughts exactly, too. :new_smile-l:

 

[Offshore]

I don't know a darned thing about this guy or this case.

It probabaly would have been best to end the post there.

 

[JSmith43]

It probabaly would have been best to end the post there.

I excluded that guy and that case. Can you handle the rest?

 

[Caterina Platt]

Mentor,

In my Googling looking for the source of my MB friend's article, I found this.

http://sacramentolanding.blogspot.com/2007/03/anger-at-central-pacific-mortgage.html

The time frame is March 2007, right after Central Pacific Mortgage, John Courson's company shuttered. Take a look at the comments below the article. Particulary the one near the bottom from a former branch owner.

Innocent until proven guilty, sure. I'll at least give him that, but charges have been brought against him and I doubt they would have been if it were merely a consequence of losing his funding sources overnight. Note the 'he kept our branch money is HIS accounts'.

It may be a case of displaced anger against the entire market being taken out on a victim, but it doesn't look good.

I do agree that there were many, many decent small firms affected by overnight loss of investors.

 

[JSmith43]

Mentor,

In my Googling looking for the source of my MB friend's article, I found this.

http://sacramentolanding.blogspot.com/2007/03/anger-at-central-pacific-mortgage.html

The time frame is March 2007, right after Central Pacific Mortgage, John Courson's company shuttered. Take a look at the comments below the article. Particulary the one near the bottom from a former branch owner.

Innocent until proven guilty, sure. I'll at least give him that, but charges have been brought against him and I doubt they would have been if it were merely a consequence of losing his funding sources overnight. Note the 'he kept our branch money is HIS accounts'.

It may be a case of displaced anger against the entire market being taken out on a victim, but it doesn't look good.

I do agree that there were many, many decent small firms affected by overnight loss of investors.

You know what? If I dig a little and express my opinion about a specific person, I might as well dig a lot. Because I would own the damage caused, say it were not true. Someone's career and lifetime deserves more than the "drive by" report I have time for now.

Thank you for recognizing my point, that the good got swept away with the bad.

 

[Caterina Platt]

Mentor,

I've posted an article that was mass emailed to many mortgage industry professionals yesterday. I have niether convicted, or particulary opined on this person.

Perhaps this angle should be taken up with the author of the article or the many bloggers.

 

[JSmith43]

I repeat, I know nothing about the new MBA guy, but in my research on the GSE mess, I found the MBA to be among the more articulate early warners of the mess.

They actually are a voice of reason. Not many mortgage brokers are members of the Mortgage Banker's Association. It may open some eyes to see how much they are on the right side on many issues.

Here is a revisiting of a Fannie critique that they apparently also wrote about in the late '90's:

http://www.mbaa.org/Advocacy/IssuePapers/DefiningtheBoundariesofGSEActivity.htm

See what you think. Off Shore, go ahead, give it a peak