Confessions of a Subprime Lender: An Insider's Tale of Greed, Fraud, and Ignorance - Softcover

Bitner, Richard

Softcover

ISBN 10: 0470402199 ISBN 13: 9780470402191

Publisher: Wiley, 2008

Synopsis

Former subprime lender Richard Bitner once worked in an industry that started out helping disadvantaged customers but collapsed due to greed, lack of financial control and willful ignorance. In Confessions of a Subprime Lender: An Insider's Tale of Greed, Fraud, and Ignorance, he reveals the truth about how the subprime lending business spiraled out of control, pushed home prices to unsustainable levels, and turned unqualified applicants into qualified borrowers through creative financing. Learn about the ways the mortgage industry can be fixed with his twenty suggestions for critical change.

About this title

From the Back Cover:

Real Estate

One insider's rollercoaster account of the subprime implosion

Richard Bitner founded his own subprime mortgage company just as the industry took off. In five years, he watched his company grow from a tiny operation to a booming business. But something wasn't right...

As housing prices skyrocketed, Bitner watched greed and fraud overtake the industry. Eventually, he became disenchanted after foreclosing on a subprime borrower who was given a legitimate, industry-standard mortgage—a loan Bitner realized never should have been made. Seeing the ugly writing on the wall, he sold his stake in the business before the industry imploded under a mountain of bad debt.

Confessions of a Subprime Lender pulls back the curtain on the players who created the subprime disaster, including brokers, lenders, Wall Street investment firms, and rating agencies who worked the system to their advantage. From his unique perspective as a subprime lender, Bitner reveals:

• Why nearly three out of every four mortgages were misleading or fraudulent

• How unscrupulous brokers tricked lenders and gullible borrowers

• How brokers and lenders turned unqualified applicants into "qualified borrowers"

• Why Wall Street and the rating agencies are largely to blame for the collapse

Interwoven with dramatic personal anecdotes, Confessions of a Subprime Lender explains how the subprime industry blew up and concludes with a comprehensive solution for rebuilding it by forcing changes on all the key players.

"Bitner's thorough review of the subprime lending industry provides a behind-the-scenes look at the mortgage mess. From the broker on Main Street to the investor on Wall Street, it's an unabridged version of what went wrong and how it needs to be fixed."
—Bill Dallas, founder, First Franklin Mortgage, one of America's largest subprime lenders, before it collapsed

"This is an in-depth, eye-opening examination of the problems impacting the housing and mortgage markets."
—Matthew McIntyre, CEO, Puritan Financial Group, Inc.

About the Author:

Richard Bitner was president and cofounder of Kellner Mortgage Investments, a subprime mortgage company that peaked at sixty-five employees and $225 million in annual loan volume. He is Managing Director for Housing Wire, a leading mortgage industry online publication.

Visit Richard's blog at www.lendingsanity.com.

About this edition

• Publisher: Wiley
• Publication date: 2008
• ISBN 10: 0470402199
• ISBN 13: 9780470402191
• Binding: Paperback
• Edition number: 1
• Number of pages: 186