Confessions of a Subprime Lender: An Insider's Tale of Greed, Fraud and Ignorance
June 28, 2008
With each day bringing new revelations about the economic damage the mortgage crisis is creating worldwide, this book couldn't be timelier. Bitner tells the fascinating story of his disillusionment after owning a sub-prime lending business for five years. It starts with foreclosing on a borrower he knew shouldn't have been given a mortgage in the first place (even though the loan fit the industry's guidelines). He relates the story of his house catching fire, and how this prompted him to re-evaluate his priorities and sell his stake in the company just as profits were plummeting and sales were hitting an all-time high. A year after Bitner bailed, the industry imploded, and he watched his former company close down.
Woven throughout his personal industry experiences is the fascinating story of how an industry started out helping disadvantaged customers buy houses, but soon lost its way due to greed, lack of financial control, and willful ignorance. This book reveals the truth about how various parts of the mortgage business yielded to the temptation to maximize profits, weakening the chain that held the system together.
Richard Bitner is a 14-year veteran of the mortgage industry, having served as president and owner of Kellner Mortgage Investments, a Dallas-based subprime wholesale lender. In addition to working for GMAC Residential Funding and TBI Mortgage, a division of Toll Brothers, he is a well-respected mortgage industry speaker and author. In 2005, he wrote the monthly “Subprime Forum: column for the Mortgage Press. He currently serves as the President of LTV Media, a publishing and communications company.