Testimony given to the Financial Crisis Inquiry Commission by Richard M. Bowen III on events during his tenure as the Business Chief Underwriter for Correspondent Lending in the Consumer Lending Group for Citigroup (where he was responsible for over 220 professional underwriters) suggests that by the final years of the U.S. housing bubble (2006–2007), the collapse of mortgage underwriting standards was endemic. His testimony stated that by 2006, 60% of mortgages purchased by Citi from some 1,600 mortgage companies were "defective" (were not underwritten to policy, or did not contain all policy-required documents) – this, despite the fact that each of these 1,600 originators was contractually responsible (certified via representations and warrantees) that its mortgage originations met Citi's standards. Moreover, during 2007, "defective mortgages (from mortgage originators contractually bound to perform underwriting to Citi's standards) increased... to over 80% of production". COUNT 5
QSN1 Richard M. Bowen III testified to the Financial Crisis Inquiry Commission regarding his tenure at which financial institution? ANS1 Citigroup QSN2 How many underwriters was Richard M. Bowen III responsible for at Citigroup? ANS2 220 QSN3 What percent of mortgages purchased by Citigroup in 2006 were defective? ANS3 60% QSN4 In 2006, how many mortgage companies were contractually responsible to meet Citi's standards? ANS4 1,600 QSN5 During 2007, what was the percent of defective mortgages not underwritten to Citi's standards? ANS5 over 80%