The mortgage meltdown and subsequent housing price abyss are the result of many players, both large and small. Looks like Domestic Bank had some problems with “unsafe and unsound banking practices,” particularly related to false advertising in the mortgage sector. From Channel 10:
CRANSTON, R.I. — Rhode Island-based Domestic Bank has been ordered to pay $1.8 million for engaging in unsafe and unsound banking and mortgage lending services.
According to the U.S. Treasury Department’s Office of Thrift Supervision, Domestic Bank’s mortgage arm falsely advertised mortgage rates and had “sham employees” on the books.
A Domestic Bank executive did not deny the accusations, but he wouldn’t go into specifics about what happened. He said the accusations stemmed from third-party relationships and administrative procedures in place between 2003 and early 2007.
Hat tip to Ward2.org blogger Mark Lucas who appears to be back in the saddle again in the blogosphere.