A senior salesperson and limited partner in charge of Miami-based Bayview Financial's residential loan acquisition salesforce was fired in late March under allegations of altering loan documents.
Miami-based Bayview Financial announced that it had fired its senior salesperson and limited partner in charge of its residential loan acquisition salesforce under allegations that he had tampered with loan documents for several years in order to make more money. The real estate investment and mortgage finance company disclosed the information July 21 in a filing with the Securities and Exchange Commission.
As of press time, rating agencies were sifting through securitizations issued by the company. Bayview estimated some three percent of securitizations contained altered loans -- which it has been working since March to identify. The company has repurchased or substituted approximately $66 million of the affected outstanding loans, representing about 2% out of a total of $3.3 billion Bayview loans in the market, according to Fitch Ratings. The loans were repurchased/substituted as a breach of a loan level representation and warranty.
The SEC on July 14 requested information and documents related to any changes made to the company's capital markets database, according to Bayview. Bayview is one of Florida's largest financial institutions, with $10.5 billion in assets. The company has issued more than $17 billion in asset-backed securities since 1998.