Posted by QuickReadAbout.com Staff in Truth or Fiction? Was this yet another lender who showed up to the Credit Orgy invite that went bad?
Recently posted articles and blog comments about First Magnus Financial Corporation, relay the plight of another lender gone bad…closes its doors, almost all of its 6,000 employees out of a job, and First Magnus officials say a bankruptcy filing is possible.
What is most interesting about this lender is that the corporation decided to point fingers at all parties except themselves…and ruined the lives of many by doing so. This author has received many calls and emails from former First Magnus employees that detail internal underwriting tactics that would make the hair on the back of your neck rise.
There are also factual instances of aggressive underwriting such as exposing a risk of $640,517 to the Federal Housing Administration’s insurance fund (See: Inspector General Arizona Audit Report No. 2006-LA-1018). Additional lawsuits and fines involving First Magnus can be viewed at http://www.TalkingPanther.com blog.
First Magnus in one specific instance lent almost $1.8 Million dollars to just one person in less than 30 days so that he could buy 6 properties in Las Vegas. On information and belief, this buyer submitted a stated income loan, which in the credit orgy days of 2003-2006, meant that if you had a pulse, you can get a loan. Imagine being able to get $1.8 Million of start up capital to start a real business that would do good for the economy, employ people and create a product!
This author, Maria Gudelis has been named in a slanderous lawsuit filed by First Magnus that caused severe damage to reputation and business. The lawsuit is filled with utter viciousness and oozes witch hunt all over. Over a hundred pages of allegations and interpretations that will curl your toes. One will question, as our attorney did, how did they come up with such fiction? Even a Hollywood screen writer could not have done a better job.
It is interested to note that the week we are filing a $50 Million counter suit, that First Magnus will most likely file bankruptcy.