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JOEBIALEK · Oct 6, 2007, 01:18 pm

Until recently I was an underwriter for a sub-prime mortgage company that is about to close. It seems that most media outlets and government officials fain ignorance about the real underlying cause of the problem. There is either a tendency to blame the borrower or act as though no one in the industry {or outside of it} saw this coming. They fail to mention that those who gained the most financially got off scot free while leaving the mess behind for everyone else to clean up. In my former company, the sales managers and loan officers "held the keys to the safe" while deciding which guidelines to ignore sometimes going so far as to bribe fellow underwriters to "look the other way". Sales managers often overrode an underwriter's decision they did not agree with. Other times fellow underwriters would be threatened with their job for "impeding company growth and progress" just because they refused to go along with the flagrant disregard of guidelines . I complained to the sales managers about the bribing but all I got was a formal write-up for making "inappropriate comments".

There was absolutely no support from the owner of the company all the way to the human resource representative. This company is as corrupt as they come. I can't tell you the number of sexual affairs that occurred between married and unmarried people; primarily among the management staff {at the workplace itself}. Promotions were strictly political thus moving people "up the ladder" who never proved themselves worthy or were on a final written warning to be terminated {for poor performance}. As a result of the corrupt management of this company, I and several hundred others were laid off. I believe the federal government needs to investigate this company and bring to trial those corrupt individuals who broke the law. This would set an example for the rest of the mortgage industry that absolute corruption corrupts absolutely.

Milton Bradley · Oct 6, 2007, 11:22 pm

This is disturbing to me on many levels, but primarily because you didn't think to inform anybody about their transgressions until you were no longer profiting from the situation.

Now you want to rat them out?

Mr. Jaggers · Oct 6, 2007, 11:24 pm

When Countrywide Home Loans goes bankrupt, it will be for all the bad loans it made.

rmnunez · Oct 8, 2007, 07:06 pm

Mortgages, like all financial services, are very heavily regulated. Lending institutions have to keep records, constantly are audited and operate in a very competitive environment. Its unlikely rival underwriters would not report a colleague breaching any regulations. Lenders ignoring guidelines would be taking greater risks which would cause greater losses in an apparent downturn.

Dieval · Oct 8, 2007, 07:13 pm

When I was in the mortgage field, a few months back, I saw many times where people would override guidelines and get approvals for loans, and judging by the credit report on some of these loans, it was awfully damn scarey...

JOEBIALEK · Nov 24, 2007, 02:45 pm

good points...whistle blown...settlement received

jose · Nov 24, 2007, 03:03 pm

hush money recieved?

rmnunez · Nov 25, 2007, 01:40 am

Dieval, did you know your state has a special Commissioner who licenses financial service providers? If you have information regarding anything with the slightest appearance of any irregularity, you may even have a legal obligation to report this, could be liable if anything adverse results from not doing so.

Charlatan · Nov 25, 2007, 02:02 am

Corruption leads to someone getting more than they should or something being done that shouldn't be done. Corruption occurs in all places where there is money and power and social standing, or wherever it can, but not always. It comes down to who is in charge of the matter, are they corrupt? If they are corrupt, and the other person is corrupt, then corruption may take place. It may also take place if only one person is corrupt by them having the power to do something wrong and doing it, but once that thing is done, under severe scrutiny they will be found out, in any case, unless they blame someone else. There is always blame assosiated with corruption, as there is something wrong done, the finger for the blame needs to point away from the perpetrator for the corrupt act to be a success, so, corruption usually includes misleading factors that would make an investigator look in the wrong places when it comes time to see what really happened. Sometimes though people will not motice the corrupt acts.

Oct 6, 2007, 01:18 pm	#1 (permalink) (top)
JOEBIALEK Molten Ash Posts: 39	Mortgage Meltdown Until recently I was an underwriter for a sub-prime mortgage company that is about to close. It seems that most media outlets and government officials fain ignorance about the real underlying cause of the problem. There is either a tendency to blame the borrower or act as though no one in the industry {or outside of it} saw this coming. They fail to mention that those who gained the most financially got off scot free while leaving the mess behind for everyone else to clean up. In my former company, the sales managers and loan officers "held the keys to the safe" while deciding which guidelines to ignore sometimes going so far as to bribe fellow underwriters to "look the other way". Sales managers often overrode an underwriter's decision they did not agree with. Other times fellow underwriters would be threatened with their job for "impeding company growth and progress" just because they refused to go along with the flagrant disregard of guidelines . I complained to the sales managers about the bribing but all I got was a formal write-up for making "inappropriate comments". There was absolutely no support from the owner of the company all the way to the human resource representative. This company is as corrupt as they come. I can't tell you the number of sexual affairs that occurred between married and unmarried people; primarily among the management staff {at the workplace itself}. Promotions were strictly political thus moving people "up the ladder" who never proved themselves worthy or were on a final written warning to be terminated {for poor performance}. As a result of the corrupt management of this company, I and several hundred others were laid off. I believe the federal government needs to investigate this company and bring to trial those corrupt individuals who broke the law. This would set an example for the rest of the mortgage industry that absolute corruption corrupts absolutely.

Oct 8, 2007, 07:06 pm	#4 (permalink) (top)
rmnunez Volcanic Erupter Location: Mexico City Posts: 4,772	Mortgages, like all financial services, are very heavily regulated. Lending institutions have to keep records, constantly are audited and operate in a very competitive environment. Its unlikely rival underwriters would not report a colleague breaching any regulations. Lenders ignoring guidelines would be taking greater risks which would cause greater losses in an apparent downturn. Et semel emissum volat irrevocabile verbum. Raúl M. Núñez Sheriff

Oct 8, 2007, 07:13 pm	#5 (permalink) (top)
Dieval Right of Center Location: San Diego, CA Posts: 2,759	When I was in the mortgage field, a few months back, I saw many times where people would override guidelines and get approvals for loans, and judging by the credit report on some of these loans, it was awfully damn scarey... "You have enemies? Good. That means you've stood up for something, sometime in your life." -- Winston Churchill

Nov 24, 2007, 02:45 pm	#6 (permalink) (top)
JOEBIALEK Molten Ash Posts: 39	same good points...whistle blown...settlement received

Nov 25, 2007, 01:40 am	#8 (permalink) (top)
rmnunez Volcanic Erupter Location: Mexico City Posts: 4,772	Dieval, did you know your state has a special Commissioner who licenses financial service providers? If you have information regarding anything with the slightest appearance of any irregularity, you may even have a legal obligation to report this, could be liable if anything adverse results from not doing so. Et semel emissum volat irrevocabile verbum. Raúl M. Núñez Sheriff

Oct 6, 2007, 11:22 pm	#2 (permalink) (top)
Milton Bradley BANNED Location: Ohio Province, Rep. of Comerica Posts: 7,320	This is disturbing to me on many levels, but primarily because you didn't think to inform anybody about their transgressions until you were no longer profiting from the situation. Now you want to rat them out?

Oct 6, 2007, 11:24 pm	#3 (permalink) (top)
Mr. Jaggers Igneous Magma Posts: 250	When Countrywide Home Loans goes bankrupt, it will be for all the bad loans it made.

Nov 24, 2007, 03:03 pm	#7 (permalink) (top)
jose Volcanic Erupter Location: España Posts: 2,508	hush money recieved?

Nov 25, 2007, 02:02 am	#9 (permalink) (top)
Charlatan Igneous Magma Location: Cape Town South Africa Posts: 254	Corruption leads to someone getting more than they should or something being done that shouldn't be done. Corruption occurs in all places where there is money and power and social standing, or wherever it can, but not always. It comes down to who is in charge of the matter, are they corrupt? If they are corrupt, and the other person is corrupt, then corruption may take place. It may also take place if only one person is corrupt by them having the power to do something wrong and doing it, but once that thing is done, under severe scrutiny they will be found out, in any case, unless they blame someone else. There is always blame assosiated with corruption, as there is something wrong done, the finger for the blame needs to point away from the perpetrator for the corrupt act to be a success, so, corruption usually includes misleading factors that would make an investigator look in the wrong places when it comes time to see what really happened. Sometimes though people will not motice the corrupt acts. Poison for the system!