Morgan Stanley has promoted a second executive linked to a questionable sales contest that pushed risky loans on its customers, The Post has learned.
Eric Maiuri, a Boston-area vice president who pushed the sales contest on colleagues, was recently named an associate regional manager, one source said.
He’s taken over responsibilities from Jason Frank, who oversaw the sales contest that sparked at least two investigations.
Frank still works at the bank as a loan specialist for wealthy customers, according to his LinkedIn profile.
Morgan Stanley is being investigated by the Financial Industry Regulatory Authority and Massachussetts’ top securities regulator for the questionable loan sales, which allegedly put the bank’s interests before its customers.
The Post first reported on the sales contests and the “Glengarry Glen Ross” culture that came with it.
And not one single bank execs gone to jail…
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Stevie McDonald (41, Winter Haven) has pleaded guilty to making false statements in a mortgage loan application. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.
According to court documents, on November 10, 2007, McDonald entered into a contract to purchase a home in Port Richey. He then applied for a mortgage loan from Washington Mutual Bank. In the loan documents that he signed and submitted to the bank, McDonald made false statements about his income and his employment. In December 2007, during the course of the closing on the property purchase, Washington Mutual paid more than $35,000 to a woman McDonald knew and later married. This payment was purportedly a satisfaction of an existing lien on the sale property. Subsequent investigation revealed that no such lien existed. Washington Mutual Bank suffered a financial loss as a consequence of McDonald’s default on this loan.
In what is becoming a frequent occurrence, Fannie Mae announced Tuesday that it sold a large portfolio of non-performing loans to a collection of private equity funds and a subsidiary of Goldman Sachs.
The government-sponsored enterprise said Tuesday that it sold off $1.06 billion in non-performing loans from its portfolio, with some now-familiar names making up the buyer pool.
Among the buyers is MTGLQ Investors, a “significant subsidiary” of Goldman Sachs. According to the Securities and Exchange Commission, Goldman Sachs owns, directly or indirectly, at least 99% of the voting securities of MTGLQ Investors, L.P.
This latest purchase is MTGLQ Investors’ fifth purchase of NPLs from one of the GSEs this year alone.
Over the course of this year, in various sales, MTGLQ Investors bought more than $2.3 billion in unpaid principal balance from the GSEs.
Fannie Mae announced earlier this week that it plans to sell more than $1 billion in non-performing loans as it continues its effort to rid its portfolio of deeply delinquent loans.
The sale will be conducted with five different pools of non-performing loans. One of the pools is a Community Impact Pool, which are smaller pools of loans that are marketed to encourage participation by smaller investors, non-profit organizations, and minority- and women-owned businesses.
The smaller pool of loans is also geographically focused and high occupancy, Fannie Mae said. According to Fannie Mae, the smaller pool consists of 120 loans, focused in the Miami, Florida area, totaling $20.7 million in unpaid principal balance.
The four of larger pools total approximately 6,900 loans and carry a total unpaid principal balance of $1.08 billion.
A ProPublica and New York Times investigation has prompted a state Senate hearing on aggressive collection practices by the state loan program.
The New Jersey State Senate has announced it will hold a hearing to examine the state’s student loan agency, which administers the largest state-based loan program in the country and one that employs aggressive and unforgiving collection practices.
A ProPublica and New York Times investigation has shown that New Jersey’s loan program charges higher interest rates than similar federal programs, and that its officials, armed with the power of the state, have garnished wages, rescinded tax refunds, and even sought repayment from families whose children have died. The state’s student loans now total $1.9 billion.
The hearing, set for Aug. 8, will be led by New Jersey state Sen. Robert Gordon, chairman of the Legislative Oversight Committee, and New Jersey state Sen. Sandra Cunningham, chairwoman of the Higher Education Committee.
“We need to be sure we are properly advising prospective borrowers and not aggressively targeting students and families that are having financial difficulties,” Gordon said in an emailed release. “The state should be supporting students and young workers in particular, not putting up additional barriers to their future success.”