Chase caught with hand in the cookie jar:
An internal memo, explaining how to beat the Mortgage Loan Computer System (Zippy) at JPM Chase was leaked to the Portland Oregonian.
The memo gives advice for fooling the system to get otherwise unqualified borrowers approved for mortgages:
3 “handy steps” for getting a questionable loan approved by JPM Chase’s automatic system:
1. Lump all of an applicant’s compensation as the applicant’s base income, rather than breaking out commissions, bonuses and tips.
2. Do not disclose use of gifts for down payments.
3. If all else fails, simply inflate the applicant’s income. “Inch it up $500 to see if you can get the findings you want. Do the same for assets.
(Thanks, Barry!)