Paladin Advisory Services have announced the appointment of mortgage loan quality subject matter expert John Gray, CFE, CAMS. Gray will drive Paladin’s forensic loan file review programs and enhance its offerings in strategic guidance and training for mortgage lenders.
Gray’s prior experience includes working as SVP of repurchases at CITI, SVP of investigations at JP Morgan/Chase, and SVP of fraud prevention at Bear Sterns/EMC Mortgage. According to Paladin, Gray has conducted highly confidential internal white-collar criminal investigations, including misappropriation of funds, and presented educational training programs for the MBA, the FBI, and more.
"John is a legend in the industry, having been at the forefront of the fight to maintain data integrity for lenders since his days as a charter member of Freddie Mac’s first investigative unit to his days resolving repurchase issues to the tune of $1.5 billion in recoveries for CITI Mortgage,” said Ann Fulmer, J.D., Principal, Paladin Advisory Services. “John’s experience assessing and mitigating risks posed by correspondents and vendors, coupled with his deep understanding of all aspects of the mortgage origination process, makes him an invaluable resource for mortgage lenders and for Paladin.”
“With fraud reports on the rise, the timing couldn’t be better,” she added.
“Today’s market is very similar to the market just before the ‘mortgage meltdown’ occurred. Although loan quality is up significantly since then and loan performance is very good, there are warning signs on the horizon,” Gray said. “Volumes are down, underwriting standards are being loosened, and the average American lives paycheck to paycheck.
“It’s no wonder that old frauds like flipping and the use of straw buyers are on the rise, or that new frauds –like the wire fraud committed via comprised business email channels—are becoming more common,” he said.