Note Brainer - Cool stuff for the note brokering community

The answer: Steven Gordon.

A former director of residential acquisitions at Bayview Financial, Steven Gordon, 49, made more than $2.8 million in additional commissions by altering the value of 2,800 loans from 2001 to 2006, according to documents filed by prosecutors in U.S. District Court in Miami.

One of his primary responsibilities was to negotiate the purchase of thousands of loans for the company’s residential mortgage securitization program. The company would then sell these loans to wholesale buyers.

Gordon was going into a spreadsheet with the list of mortgages,  fixing the numbers to make each one seem profitable– from owners with good credit, reclassifying mobile homes as single-family houses and loans in default as good mortgages.

Bayview officials said it repurchased or substituted new loans to replace mortgages on which data had been altered in the amount of $6.6 million and no investors lost money.

Gordon was sentenced to 3 years in prison for one count of wire fraud.

“I am appalled at how easy it was for him to do this,” U.S. Attorney R. Alexander Acosta said. “You would think there would be more due diligence.”

For note professionals the name Bayview may ring a bell, they have a subsidiary in Texas which purchases private mortgages, Bayview First Funding, previously known as Interbay Funding.

We asked the director in charge of Bayview First Funding to shed some light on this issue, how it affects their company and what their plans are for the future.