SANCHEZ: We did.
DECONCINI: No, you hired them. Why not get a truly independent one or use arbitration – if you’re trying to bend over backwards to be fair. There’s no appeal from your reappraisal. Whatever it is you take it.
SANCHEZ: If it meets our appraisal standards.
CIRONA : The Phoenician reappraisal process is not complete. We have received Lincoln’s rebuttal and forwarded it to our independent appraisers.
[At this point the senators left to vote. We resumed when Senators DeConcini and Riegle returned.]
SANCHEZ: Lincoln had underwriting problems with all of their investments, equity securities, debt securities, land loans and direct real estate investments. It had no loan underwriting policy manual in elect when we began our 1986 exam. When the examiners requested such a manual they were informed that it was being printed. The examiners looked at 32 real estate loans that Lincoln had made since the 1984 exam. There were no credit reports on the borrowers in all 52 of the loan Files.
DECONCINI: I have trouble with this discussion. Are you saying that their underwriting practices were illegal or just not the best practice?
CIRONA: These underwriting practices violate our regulatory guidelines.
BLACK: They are also an unsafe and unsound practice.
DECONCINI: Those are two very different things.
SANCHEZ: You need credit reports for proper underwriting.
[Senator Glenn returns at this point.]
RIEGLE: To recap what’s been said for Senator Glenn: 52 of the 52 loans they looked at had no credit information. Do we have a history of loans to folks with inadequate credit?
SANCHEZ: $47 million in loans were classified. by examiners due to lack of adequate credit to assure repayment of the loans.
PATRIARCA: They’re flying blind on all of their different loans and investments. That’s what you do when you don’t underwrite.
GLENN: How long had these loans been on the books?
DECONCINI: No, you hired them. Why not get a truly independent one or use arbitration – if you’re trying to bend over backwards to be fair. There’s no appeal from your reappraisal. Whatever it is you take it.
SANCHEZ: If it meets our appraisal standards.
CIRONA : The Phoenician reappraisal process is not complete. We have received Lincoln’s rebuttal and forwarded it to our independent appraisers.
SANCHEZ: Lincoln had underwriting problems with all of their investments, equity securities, debt securities, land loans and direct real estate investments. It had no loan underwriting policy manual in elect when we began our 1986 exam. When the examiners requested such a manual they were informed that it was being printed. The examiners looked at 32 real estate loans that Lincoln had made since the 1984 exam. There were no credit reports on the borrowers in all 52 of the loan Files.
DECONCINI: I have trouble with this discussion. Are you saying that their underwriting practices were illegal or just not the best practice?
CIRONA: These underwriting practices violate our regulatory guidelines.
BLACK: They are also an unsafe and unsound practice.
DECONCINI: Those are two very different things.
SANCHEZ: You need credit reports for proper underwriting.
[Senator Glenn returns at this point.]
RIEGLE: To recap what’s been said for Senator Glenn: 52 of the 52 loans they looked at had no credit information. Do we have a history of loans to folks with inadequate credit?
SANCHEZ: $47 million in loans were classified. by examiners due to lack of adequate credit to assure repayment of the loans.
PATRIARCA: They’re flying blind on all of their different loans and investments. That’s what you do when you don’t underwrite.
GLENN: How long had these loans been on the books?
Next Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
