Risk Mitigation And Subprime
Bank Lawyer’s Blog:
Not surprisingly, some mitigation firms think that one way to resolve the credit crisis is to use more risk mitigation services. Naturally, we at Bank Lawyer’s Blog believe that the key to resolving the crisis is to pay more billable hours to bank lawyers.
At least one risk mitigation expert seems to support the theory of some observers that when it comes to subprime, there was "a whole lot of fraud goin’ on."
Risk mitigation firm Digital Risk LLC, Maitland, Fla., has found 50%
to 60% of the subprime and alternative-A mortgages from the last few
years that it has examined due to contract breaches contain significant
misrepresentation or fraud, according to Bruce Miller, who was recently
named to head the company’s New York-based structured finance
consultancy practice.
Mr. Miller, the former founder of Credit Suisse’s conduit and credit
products group, said traditional methods of analyzing such loans have…