Financial watchers largely viewed the prosecution of Abacus as unreasonable, especially in comparison of the kids-gloves treatment received by large banks. Somehow, too big to fail gave way to small enough to jail. It is a real estate agent’s opinion of the value of the property. How did “too big to fail” give way to “small enough to jail?” BPO is an abbreviation for Broker’s Price Opinion. The jury acquitted Abacus, along with several officers, of all charges in June 2015, three years after the original indictment. If you’re behind on your mortgage and not in forbearance or loan modification, these may still be options. Abacus blamed Yu, while prosecutors insisted that Abacus employees executed bank policy of approving false loan applications. 4 Steps to Avoid Foreclosure If you want to stay in your home Your mortgage servicer can work with you to avoid foreclosure and see if there’s an option to keep your home. Thomas Sung, owner of Abacus, and his family fought the charges during a trial that lasted for months. Yet Abacus loans had a mortgage default rate of 0.5 percent, which was just a tenth of the national average.ĭistrict attorneys paraded employees out of the bank, handcuffed and chained together like cattle. ![]() charged the bank with falsifying loan applications so that borrowers would qualify for mortgages. Abacus also promptly reported Yu’s conduct to the Office of Thrift Supervision.įinding evidence of an ongoing mortgage fraud conspiracy at Abacus, in May 2012 the Manhattan District Attorney’s office indicted the bank and 19 of its employees. Once Abacus discovered his illegal behavior, they immediately fired him. Abacus became the only financial institution to actually face criminal charges following the subprime mortgage crisis.Ī rogue employee of the bank, Ken Yu, engaged in money laundering and loan fraud. ![]() The 2017 PBS Frontline documentary Abacus: Small Enough to Jail tells the story of the Abacus Federal Savings Bank, a family-owned community bank situated in NYC’s Chinatown.
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