In the summer of 2007, a team of corporate investigators sifted through mounds of paper pulled from shred bins at Countrywide Financial Corp. mortgage shops in and around Boston. By intercepting the documents before they were sliced by the shredder, the investigators were able to uncover what they believed was evidence that branch employees had used scissors, tape and Wite-Out to create fake bank statements, inflated property appraisals and other phony paperwork. Inside the heaps of paper, for example, they found mock-ups that indicated to investigators that workers had, as a matter of routine, literally cut and pasted the address for one home onto an appraisal for a completely different piece of property. Eileen Foster, the company’s new fraud investigations chief, had seen a lot of slippery behavior in her two-plus decades in the banking business. But she’d never seen anything like this.
Countrywide protected fraudsters by silencing whistleblowers
September 22, 2011, 1:00pm
Jason Philyaw was a reporter with HousingWire through mid-2012.see full bio
Most Popular Articles
Latest Articles
Boston’s international business boom equals more demand for housing
For real estate professionals, international business shows up in relocation traffic, rental demand and luxury purchases tied to expansion.
-
Trump says Fannie Mae, Freddie Mac IPO still on the table
-
Akron looks to deflate minimum lot size rules to spur infill
-
Mortgage Forward to acquire First Federal Bank’s TPO division
-
Nest Egg Protection Act would raise capital gains tax exclusion for senior home sellers
-
Drees Homes bets on operational leadership for next century
Jason Philyaw was a reporter with HousingWire through mid-2012.see full bio