Filers reported suspicious activity involving pricing disparities in 34 SAR-SFs, or 37 percent of SAR-SFs referencing CMOs. While the face values of the CMOs had not changed since issuance, their market values had greatly diminished, some reportedly to as little as 1 percent of face value. Filers reported many subjects who applied for loans based on the face value of the security. Other pricing issues included disputes with customers about the value of their mortgage securities, suspicious trading designed to impact market value, and reports of “offers” to purchase securities substantially above market value. The remainder.
