Mortgage Meltdown

JOEBIALEK · 10-05-2007, 11:36 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.

rudedog · 10-06-2007, 10:29 AM

sorry to hear about the layoff. what you are describing is pretty much buisness as usual in most large company's today, especially ones who handle large financial transactions. after years and years of traveling the country i can honestly say i couldn't possibly keep count of the corrupt people and company's that i have seen.
as usual the police and the feds will look the other way so there isnt much you can do about it. Taking on a whole industry simply is possible.
hopefully your experience there will look really good on the resume.

JOEBIALEK · 11-23-2007, 04:41 PM

thanks, I'll keep that in mind...good points

**Kris10** · 11-26-2007, 08:30 AM

A lot of the blame does lie on those that took on an impossible mortgage. My husband and I will close on our first home tomorrow. Before we even thought a house was possible, we sat down and figured out what we could afford. We factored in utilities, water, sewer, desired remodeling, etc. If we couldn't get a decent house in our budget, we would wait. Fortunately things worked out for us and our budget.

I'll admit that I was ignorant to the real estate and mortgage world before we decided to buy a home. However, I researched a lot and talked to people I trust. We worked with a realtor/mortgage broker that went above and beyond to make sure we understood the process. For the sake of full disclosure, we worked with my husband's step-brother, but family doesn't always guarantee the best service. Because our realtor cared about his integrity and that of his industry, he will be getting tons of referrals from us.

Of course there are predatory lenders. Its your responsibility as a consumer to research what you are buying, especially when its your most important purchase!

As for the company corruption and affairs... anyone that participated in those activities should get busted. That sets an example for any industry.

**j10asen** · 11-27-2007, 07:55 AM

Quote:

Originally Posted by Kris10

A lot of the blame does lie on those that took on an impossible mortgage. My husband and I will close on our first home tomorrow. Before we even thought a house was possible, we sat down and figured out what we could afford. We factored in utilities, water, sewer, desired remodeling, etc. If we couldn't get a decent house in our budget, we would wait. Fortunately things worked out for us and our budget.

Congratulations Kris10

Now it's your job to turn that house into a home and an opportunity to share all the trials and tribulations of home ownership with others on Ћ€βцßß₤€Я.
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