U.S. Banks Bulk Up Mortgage Departments

The Financial Times reports that major American banks and mortgage lending institutions, having suddenly discovered that gambling takes place in their casinos, have embarked on a hiring binge. Their goal is to bulk up their mortgage lending departments, so that inconvenient details, such as accurate documentation, are properly handled by qualified personnel.

This curious development comes on the heels of certain banks' statements that they had all the mortgage experts they needed. Those assertion now appears in play. (For more on how both political parties were notably absent from expressing election year dismay over Foreclosuregate, read Francesco Guerra's FT piece.)

As the mortgage scandal unfolds, its unsavory narrative is akin to bad news that only gets worse. One incredible aspect of the mortgage story involves the qualifications one needs to become part of certain institutions' mortgage team. This excerpt from the FT story sums up this sorry situation:

A posting for a bankruptcy document preparation expert on the website of Everbank, a financial services company based in Jacksonville, Florida, describes a job opening: “Provide temporary relief to the document execution team. Access various systems and print out supporting documentation necessary for the signing officer to review, thus enabling them to attest to personal knowledge of loan status....”

Everbank said that all new employees are required to go through formal training and that on any given day it posts more than 100 job openings.

Most of these jobs are lower level and require no more than high school diploma, according to advertised listings. Mr. Bove said that banks have a good reason for not wanting to talk about their hiring plans. “Saying you are hiring is the same as admitting you have a problem,” he said.