Undue Diligence 0
CitiGroup discovers that it’s been buying mortgage loans that aren’t properly documented and decides that’s probably not a good idea:
Other missing information included employment confirmations, phone numbers, credit reports and rent verification, the letter said. The review also found “income calculation errors.”
The suspension of correspondent lending is “a bold step” that may frustrate Citigroup’s mortgage-banking partners and put them on notice that the company will no longer tolerate incomplete loan submissions, said David Lykken, managing partner at consultant Mortgage Banking Solutions in Austin, Texas.
When bankers adopted The Donald as their role-model, deciding that it was all about The Deal and not about the investment, they don’t seem to have noticed that The Donald’s deals keep teetering on bankruptcy.
