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568 Notes to Chapter 6

27. Lewis Ranieri, interview by FCIC, July 30, 2010.
28. James M. Lacko and Janis K. Pappalardo, “The Effect of Mortgage Broker Compensation Disclo-
sures on Consumers and Competition: A Controlled Experiment,” Federal Trade Commission Bureau of
Economics Staff Report (February 2004), p. 1.
29. Jay Jeffries, testimony before the FCIC, Hearing on the Impact of the Financial Crisis—State of
Nevada, session 3: The Impact of the Financial Crisis on Nevada Real Estate, September 8, 2010, tran-
script, p. 177.
30. Brian Bucks and Karen Pence, “Do Borrowers Know Their Mortgage Terms?” Journal of Urban
Economics 64 (2008): 223.
31. Michael Calhoun and Julia Gordon, interview by FCIC, September 16, 2010.
32. Annamaria Lusardi, “Americans’ Financial Capability,” report prepared for the FCIC, February 26,
2010, p. 3.
33. FCIC staff estimates based on analysis of Blackbox, S&P, and IP Recovery, provided by Antje
Berndt, Burton Hollifield, and Patrik Sandas, in their paper, “The Role of Mortgage Brokers in the Sub-
prime Crisis,” April 2010.
34. William C. Apgar and Allen J. Fishbein, “The Changing Industrial Organization of Housing Fi-
nance and the Changing Role of Community-Based Organizations,” working paper (Joint Center for
Housing Studies, Harvard University, May 2004), p. 9.
35. Herb Sandler, interview by FCIC, September 22, 2010.
36. Wholesale Access, “Mortgage Brokers 2006” (August 2007), pp. 35, 37.
37. Jamie Dimon, testimony before the FCIC, First Public Hearing of the FCIC, panel 1: Financial In-
stitution Representatives, January 13, 2010, transcript, p. 13.
38. October Research Corporation, executive summary of the 2007 National Appraisal Survey, p. 4.
39. Dennis J. Black, written testimony for the FCIC, Hearing on the Impact of the Financial Crisis—
Miami, session 2: Uncovering Mortgage Fraud in Miami, September 21, 2010, p. 8.
40. Karen J. Mann, written testimony for the FCIC, Hearing on the Impact of the Financial Crisis—
Sacramento, session 2: Mortgage Origination, Mortgage Fraud and Predatory Lending in the Sacramento
Region, September 23, 2010, p. 2.
41. Gary Crabtree, testimony before the FCIC, Hearing on the Impact of the Financial Crisis—
Greater Bakersfield, session 4: Local Housing Market, September 7, 2010, transcript, p. 172.
42. Complaint, People of the State of New York v. First American Corporation and First American
eAppraiseIT (N.Y. Sup. Ct. November 1, 2007), pp. 3, 7, 8.
43. Martin Eakes, quoted in Richard A. Oppel Jr. and Patrick McGeehan, “Along with a Lender, Is
Citigroup Buying Trouble?” New York Times, October 22, 2000.
44. Pam Flaherty, quoted in Erick Bergquist, “Judging Citi, a Year Later: Subprime Reform ‘on Track’;
Critics Unsatisfied,” American Banker, September 10, 2001.
45. “Citigroup Settles FTC Charges against the Associates Record-Setting $215 Million for Subprime
Lending Victims,” Federal Trade Commission press release, September 19, 2002.
46. Mark Olson, interview by FCIC, October 4, 2010.
47. Timothy O’Brien, “Fed Assess Citigroup Unit $70 Million in Loan Abuse,” The New York Times,
May 28, 2004.
48. Federal Reserve Board internal staff document, “The Problem of Predatory Lending,” December
5, 2000, pp. 10–13.
49. Federal Reserve Board, Morning Session of Public Hearing on Home Equity Lending, July 27,
2000, opening remarks by Governor Gramlich, p. 9.
50. Scott Alvarez, interview by FCIC, March 23, 2010.
51. Alan Greenspan, written testimony for the FCIC, Hearing on Subprime Lending and Securitiza-
tion and Government-Sponsored Enterprises (GSEs), day one, session 1: The Federal Reserve, April 7,
2010, p. 13.
52. Alan Greenspan, quoted in David Faber, And Then the Roof Caved In: How Wall Street’s Greed and
Stupidity Brought Capitalism to Its Knees (Hoboken, N.J.: Wiley, 2009), pp. 53–54.
53. “Truth in Lending,” Federal Register 66, no. 245 (December 20, 2001): 65612 (quotation), 65608.