Storms brewing
As Washington Mutual is investigated for allegedly inflating home value appraisals to secure loans, William Rhode reports on why lenders should brace themselves for a prolonged period of lawsuits
New York state attorney general Andrew Cuomo is making quite a name for himself in the US mortgage industry. In November 2007 he accused Washington Mutual, one of the largest mortgage lenders in the US, of being involved in a scheme to artificially inflate home value appraisals to secure mortgage loans.
Cuomo then subpoenaed government-sponsored mortgage enterprises (GSEs) Freddie Mac and Fannie Mae, demanding data on loans they bought from lenders including Washington Mutual. The subpoenas also
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