In late 2006, the U.S. subprime mortgage industry entered what could only be referred to as a crisis. A rise in subprime mortgage defaults and foreclosures caused over 100 lenders to fail or file for bankruptcy. Enter Richard Bitner, a former subprime lender, who reveals for the first time the insider perspective of the worst mortgage crisis in US history in his new book, 'Confessions of a Subprime Lender: An Insider’s Tale of Greed, Fraud, and Ignorance'.

Richard Bitner, a 14-year veteran of the mortgage industry opens up about his personal experiences as a subprime lender and tells the insider story of how an industry started out helping disadvantaged customers buy houses, but soon got lost in greed, lack of financial control, and wilful ignorance. Confessions of a Subprime Lender reveals the insider truth about how various parts of the mortgage business yielded to the temptation to maximise profits, weakening the chain that held the system together. From borrowers, to brokers, to lenders, to appraisers, to Wall Street Investment Banks, Bitner exposes the role that each level of the hierarchy played - and the tactics they used - in bringing on one of the greatest business disasters the US has ever seen. The book highlights:

• How nearly three out of every four sub-prime mortgages originated by brokers were misleading or fraudulent, and the tactics used to trick lenders and borrowers.
• How the sub-prime industry pushed home prices to unsustainable levels
• How brokers and lenders used creative financing to turn unqualified applicants into qualified borrowers
• How the conflicted relationship between Wall Street and the rating agencies is largely to blame for the collapse of the mortgage industry
• How a comprehensive solution that addresses every level of the food chain is the key to fixing the mortgage industry

While stated income loans have received extensive media coverage, Bitner explains that the loan approval process was filled with holes. 'Since every loan was a challenge because of credit issues', Bitner says, 'the industry developed techniques to help unqualified borrowers secure financing. As competition increased, the definition of what constituted a good risk became blurred'.  He further adds that 'Whether it was deception on the part of the borrower or unscrupulous loan originators, the manipulation of information to qualify borrowers was rampant'.

Bitner proposes a broad list of recommendations that cover every segment of the mortgage industry. Although he believes the current bill passed in the US House of Representatives is a good start, Bitner feels it falls short in several areas. 'I'm concerned that the biggest contributor to the problem is still being ignored', said Bitner. 'The rating agencies fooled investors into believing these mortgages were safe. Until Congress is willing to address the root cause of this problem, any solution they implement will only serve as a band-aid'.

Now, with each day bringing new revelations about the economic damage the mortgage crisis is creating worldwide, Confessions of a Subprime Lender exposes the root causes of the problem and the necessary steps that are needed to fix it.

Richard Bitner is a 14-year veteran of the US mortgage industry, having served as president and owner of Kellner Mortgage Investments, a Dallas-based subprime wholesale lender. In addition to working for GMAC Residential Funding and TBI Mortgage, a division of Toll Brothers, he is a well-respected mortgage industry speaker and author. In 2005, he wrote the monthly 'Subprime Forum' column for the Mortgage Press. He currently serves as the President of LTV Media, a publishing and communications company.

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