Lawyers at James Hoyer think this is a "theory". What a joke.

My description of this business model is not in the least bit specious and it is hardly conspiratorial (I have more than enough consequential evidence on the record to substantiate my claims). In my opinion, this business model represents the largest investment scam in our nations history

C) Originate, process and barely underwrite as many loans as possible. (The underwriting consisted of a two-page underwriting sheet, which was distributed to their loan officers)

D) Turn a blind eye to the unwritten rules; which, again, consist of forging documents, doctoring title/credit and bribing appraisers. When all of this gets out of hand at an individual branch, conduct and internal audit, pin everything on the branch manager and/or certain loan officers, fire them and write them off as rogue employees. Why? Because they are expendable and can easily be replaced.

E) Pool and issue the all of the loans (as ABS) into the companys own bankruptcy remote trust and then service the loans (including the loans that were originated by the so-called rogue employees). The idea is to churn out thousands of loans so they can be pooled and serviced (and the company makes even more money by servicing the loans) because this is where the real money is (i.e. billions).

A) Set up hundreds of branches in various remote office locations in different areas of the country.

B)  Hire inexperienced candidates (The biggest percentage being young males under 30). Give them very poor training, offer to pay them buckets of money along with lavish perks. Identify what employees fit the mold of the guy who will do what it takes to get the loan done (i.e. forge documents, doctor title/credit, bribe the appraisers, and rush borrowers to the closing table ASAP). Once this is established, fire the employees that wont engage in these shady dealings, keep the rest and hire more bodies then repeat the process.

Many lessons can be learned from this recent refinance boom. However, if the SEC does not pay extra special attention to McCloskey v. Ameriquest Mortgage Company and the complex issuance of MBS & ABS - two or three Ameriquests could emerge during the next refinance boom. From my experience, the country cannot afford that to happen because Ameriquests business model worked beautifully. What was this business model? It was simple yet elegant: