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Event: Interview with James Burkeen, former contractor for Clayton Holdings Type of Event: Informational interview Date of Event: February 1, 2010 Team Leader: Tom Krebs Participants – Non Commission: James Burkeen Participants – Commission: Tom Krebs MFR Prepared by: Courtney Mayo Date of MFR: Created from Tom Krebs’ notes on December 2, 2010 Notes from the Interview: Quantity took precedence over quality Novice reviewers Perform specific tests to help buyers determine how much to pay for a pool of loans Investors only wanted minimal testing The client drives the process As levels of default increased and fraud in subprime loans grew, the Wall Street firms grew to trust software designed to offset those risks by charging higher interest rates, extra fees and penalties for paying off mortgages early Jana Lujan – Clayton Reviewer Loans without documentations would be sold at a slight discount Change fee categories changed the way fees were paid so they would not be disqualified and red flagged as predatory Complained to Clayton Appraisals looked infected Liars Loans Ed Peek – a Clayton supervisor o Loan buyers bought rejected loans anyway
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