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By NEAL ST. ANTHONY, Star Tribune
Last update: May 6, 2009 - 9:35 PM
Wells Fargo, the nation's largest mortgage company, was the
eighth-largest maker of subprime mortgages in recent years and among the 25 biggest players in the subprime market that imploded in 2007 and 2008, spurring the government to inject hundreds of billions of dollars into U.S. banks, according to a nonprofit research group.
The Center for Public Integrity, using data from lender filings made under the Home Mortgage Disclosure Act, listed among top subprime lenders Countrywide Financial Corp., Ameriquest Mortgage Co., New Century Financial Corp., Wells Fargo, J.P. Morgan Chase, Citigroup and WMC Mortgage Corp., a unit of General Electric. They were among "enablers that bankrolled the type of lending that has threatened the financial system," the center said.
The center reviewed government data on nearly 7.2 million high-interest or subprime loans made from 2005 through 2007, from the peak to the collapse of the subprime boom. The center said the top 25 originators of such loans accounted for nearly $1 trillion of the $1.38 trillion in subprime loans made during that period.
The center, a nonprofit, independent, research and news agency founded in 1990, specializes in investigative reports that affect the public purse.
In a prepared statement Wednesday, Wells Fargo dismissed the research report.
. . .
Some large banks were subprime [defrauding] lenders.
Wachovia bank went under, in large part because it purchased World Savings [of California] which was writing streams of subprime mortgages that were scandalously rife with every kind of fraud & shenanigans.
They either were knowingly involved or criminally negligent for not knowing or in denial of what they didn't want to know.
One has to wonder how much these banks knew about the 3rd party loan originators. Was that just a means of making it seem like their hands were clean, at least in terms of intent? Plausible deniability?
What went on at 3rd party loan originators was wildly criminal. Most of the time they bald face lied to borrowers, although in some cases borrowers were prodded into lying on applications by these same 3rd party loan originators.
Banks WANTED SUBPRIMES, even over prime mortgages, Why? Because they paid higher interest.
Or even if i don't personally get hooked in it, i will have to live with global economic devastation & higher taxes to pay to bailout the very authors of some new mess.
Ameriquest, founded by Arnall as Long Beach Savings in 1979, has faced off with consumer activists, regulators and private litigants in a series of disputes over its lending practices dating to 1996.