Former Taylor, Bean & Whitaker Mortgage Corp. chairman Lee Farkas is being held pending a pre-trail hearing. He is being accused of a 1.9 billion dollar fraud against investors, HUD and the tax payers (using TARP funds). If convicted he will spend the rest of his life in jail. Read more about it here.
The stage is set to make him the example for the industry abuses and excess. Abuses should be addressed and those who have done wrong must be held accoutable. But this will have a negative effect on the industry causing an over reaction and further tightening on lending requirements.
The moral of the story for Active Rain - it is more important than ever to partner with a seasoned lender to guide you and your clients through the new hurdles to insure smooth closings.
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