(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

Code of Ethics and Mortgage Companies

            Unethical business behaviors exist and are present in many companies. Since I am a mortgage loan processor (previously originator), I thought I would touch on the unethical business practices that have come to the forefront in this arena.
             There have been so many mortgage companies going out of business since the mortgage debacle that rocked our industry in 2008. We are still feeling the effects of this debacle and will continue for years to come. This major event caused the government to change the way mortgage documents are disclosed and the amount of time borrower's have to look over such documents.
             One of the major issues the Government changed is the amount of money that originators and Banks used to make and the means they would use to go about doing this. I was an originator during that time and did the same as everyone else in the industry. We would hike the rate and make the most money we possible could, which could be anywhere from 3-6% of the loan amount. This is no longer the case because of the regulations from the Federal Government. Currently, Banks and other Lenders can only make 1 to 2% of the total loan amount and that is it. The paperwork has gotten more difficult to get through underwriting and it takes so much time. We have gone from stated income to fully verifying income. .
             Unethical behavior in the mortgage industry has caused major problems. Some Loan Officers would create documents such as W-2's and pay stubs so their borrower's could qualify for larger loan amounts. This was totally unethical and false information. .
             I remember a few years ago, a real estate broker in New York committed wire, bank, and mail fraud in connection with FHA (Federal Housing Administration) mortgages. Typically, FHA mortgages required little cash investment and this type of loan was more flexible than regular conventional loans. This broker would recruit new home buyers and help them to qualify for home mortgages.


Essays Related to Code of Ethics and Mortgage Companies

1. The World Financial Crisis

The governments, banks, enterprises that facilitated mortgage lending, and insurance companies where the first to feel the effects but all the repercussions rippled down to effect the employers, the employees, and families' lives in general. ... This led mortgage dealers to issue mortgages with terms unfavorable to borrowers, who were often families that did not qualify for ordinary home loans. ... That being said, mortgage lenders did not only hold the loans, happy at receiving the monthly check from the mortgage holders, but they were selling these loans to banks and investors ther...

  • Word Count: 1610
  • Approx Pages: 6
  • Has Bibliography

2. Economics and Government Regulations

However, fewer and fewer companies dominate the market in any industry. ... Fannie Mae and Freddie Mac are two "too big to fail" firms in the mortgage industry. ... President Obama wants to shut down these two companies and replaces them with more scaled-down approaches to guarantee the safety of the economy. ... In short, the two companies contribute a lot to the financial systems; they help banks and Government to get more money to do their financing. ...

  • Word Count: 2282
  • Approx Pages: 9

3. Mutual Funds

CONSUMER PROTECTION REGULATORY REFORM OF INVESTMENT COMPANIES I. ... The first wave of regulation was directed at the securities industry, specifically public companies. ... And in 1940, Congress passed the Investment Company and Advisor Act, which regulated aspects of companies that invest at least 40% of their assets in securities. ... These trusts financed farm mortgages, railroads, and other industries. ... The 1940 Investment Company and Advisors Act set forth more detailed requirements for mutual funds, thus making them the most heavily regulated segment of the securities industry....

  • Word Count: 5805
  • Approx Pages: 23
  • Has Bibliography
  • Grade Level: Undergraduate

4. The Huron Consulting Group

It was the steepest decline since the company first sold shares to the public in October 2004. The company also suffers from massive downgrading on its shares by the analyst community. ... It advised United Airlines on its bankruptcy and helped uncover accounting shortfalls at mortgage giant Fannie Mae, which eventually led the SEC to charge Fannie Mae with fraud. In 2007, Huron was named among Business Week's hot growth companies and last year was ranked on a Fortune list of 100 fastest-growing U.S. companies. ... (50%) Reasons This was chosen because this case gave an example how d...

  • Word Count: 2759
  • Approx Pages: 11
  • Has Bibliography
  • Grade Level: Undergraduate

5. Direct Marketing

Party plan companies have been selling products direct to customers in people's homes for many years. ... Some of the more traditional direct marketing methods like door-to-door selling are employed and are effective and widely used by many companies. Traditional direct mail and telephone marketing techniques are widely employed by a range of direct marketing companies. ... Direct marketing is likely to form a major part of communications strategy of many companies and not simply form a kind of tactical adjunct. ... Data compilation where both internal data, such as customer lists and out...

  • Word Count: 7912
  • Approx Pages: 32
  • Grade Level: Undergraduate

6. DIRECT MARKETING

Party plan companies have been selling products direct to customers in people's homes for many years. ... Some of the more traditional direct marketing methods like door-to-door selling are employed and are effective and widely used by many companies. Traditional direct mail and telephone marketing techniques are widely employed by a range of direct marketing companies. ... Direct marketing is likely to form a major part of communications strategy of many companies and not simply form a kind of tactical adjunct. ... Data compilation where both internal data, such as customer lists and out...

  • Word Count: 7912
  • Approx Pages: 32
  • Grade Level: Undergraduate

7. DIRECT MARKETING

Party plan companies have been selling products direct to customers in people's homes for many years. ... Some of the more traditional direct marketing methods like door-to-door selling are employed and are effective and widely used by many companies. Traditional direct mail and telephone marketing techniques are widely employed by a range of direct marketing companies. ... Direct marketing is likely to form a major part of communications strategy of many companies and not simply form a kind of tactical adjunct. ... Data compilation where both internal data, such as customer lists and out...

  • Word Count: 7912
  • Approx Pages: 32
  • Grade Level: Undergraduate

8. DIRECT MARKETING

Party plan companies have been selling products direct to customers in people's homes for many years. ... Some of the more traditional direct marketing methods like door-to-door selling are employed and are effective and widely used by many companies. Traditional direct mail and telephone marketing techniques are widely employed by a range of direct marketing companies. ... Direct marketing is likely to form a major part of communications strategy of many companies and not simply form a kind of tactical adjunct. ... Data compilation where both internal data, such as customer lists and out...

  • Word Count: 7912
  • Approx Pages: 32
  • Grade Level: Undergraduate

9. Direct Marketing

Party plan companies have been selling products direct to customers in people's homes for many years. ... Some of the more traditional direct marketing methods like door-to-door selling are employed and are effective and widely used by many companies. Traditional direct mail and telephone marketing techniques are widely employed by a range of direct marketing companies. ... Direct marketing is likely to form a major part of communications strategy of many companies and not simply form a kind of tactical adjunct. ... Data compilation where both internal data, such as customer lists and out...

  • Word Count: 7708
  • Approx Pages: 31
  • Grade Level: Undergraduate

Got a writing question? Ask our professional writer!
Submit My Question