Chase Memo Details How To Push Thru Dubious Loans

In Portland, Oregon, The Oregonian recently reported:

• A newly surfaced memo from banking giant JPMorgan Chase provides a rare glimpse into the mentality that fueled the mortgage crisis. The memo's title says it all: "Zippy Cheats & Tricks." It is a primer on how to get risky mortgage loans approved by Zippy, Chase's in-house automated loan underwriting system. The secret to approval? Inflate the borrowers' income or otherwise falsify their loan application.

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• The document, a copy of which was obtained by The Oregonian, bears a Chase corporate logo. But it's unclear how widely it was circulated or used within Chase. Bank spokesman Tom Kelly confirmed that the "Cheats & Tricks" memo was e-mailed from Chase but added that it does not reflect Chase corporate policy.

For more, see Chase mortgage memo pushes 'Cheats & Tricks' (The bank says it never backed the strategies, which detail how to get an iffy loan approved) (when link expires, try here or try here).

Go here for a reprint of the Zippy Cheats & Tricks memo (when link expires, try here).