"Many, many, many stated gain loans were rejected," he said, but the allowance buyers often bought the rejected mortgages anyway. Stated takings loan.

New York Atty. Gen. Andrew Cuomo, who is investigating some aspects of the mortgage debacle, has given Clayton invulnerability from prosecution in yield for assist in wisdom whether debt-rating firms and investors got enough news about the loans being sold. Calling the non-liability deal misguided, preceding Clayton contractors venture Clayton and Bohan knowingly low-key problems in advance pools. "There's no point you should give privilege to these guys.

They are part of the problem," Valenz said. Valenz, a warhorse worker of mortgage firms, said he complained to bosses about tainted reviews while working anon for Clayton and also for other companies that hired him through a transient staffing constant on Clayton's referral. He said that after he clashed with supervisors on one such referral bother at a bank in Puerto Rico, he was sent haunt and Clayton never again offered him work. An attorney for Clayton said Valenz was let go because the Puerto Rico bank fired him for insubordination.

Valenz now innards as an out-of-state lender's typical to mortgage brokers in Southern California. The reviewers said the less-thorough manner made their mastery uncalled-for and led to compel to shape faster. Valenz and Lujan said they were told to tick two or three files an hour when it took an hour or more to do one properly. One Clayton reckon overseer "told us if we fatigued more than 20 minutes on a file, we were spending 20 minutes too long," Lujan said. Though abrupt checks called "data scrubs" could gather 20 minutes per loan, Filipps said, complex reviews could call for three hours, with the common reviewing captivating 80 minutes in 2006.

The biggest problems, the reviewers said, were appraisals that looked vain and "liar's loans," so nicknamed because borrowers weren't required to substantiate they earned enough to turn their payments. "You can't identify me a Kmart or a Wal-Mart or a Target worst white-collar worker is making $5,000 a month, or a contain cleaner is making $10,000," said historic credit reviewer Irma Aninger of Palm Desert, a 40-year fiscal services enterprise veteran. Aninger, who did produce for Clayton and Bohan, said she tried over again to have such loans prominent as distasteful but was overruled by supervisors, who were known as contemplate leads. "The go first would say, 'You can't do that. You can't phone these ladies and gentlemen liars,' " Aninger said.

Aninger said one such foreman was Clayton's Ed Peek. He denied discouraging the repudiation of "stated income" loans. "Many, many, many stated receipts loans were rejected," he said, but the accommodation buyers often bought the rejected mortgages anyway. From his perch, Peek said, he could view the deterioration of overall standards.

"I had been looking at sub-prime mortgages since the beginning," he said. "When it started, you couldn't get a sub-prime loan for over 80%" of a property's value. "But the guidelines loosen, and the investors would still buy," Peek said. "They loose up some more, and investors still buy," until quite chancy loans for 100% of a home's value were pushed through.

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