Unethical business…

andres2bz · Joined: 19 May 2006 Posts: 33 Location: NE

Unethical business…
The story… I have been loosing a large amount of my Spanish customers (4 of them are relatives )… here is the situation… early on when I first jumped in the industry, my mentor advised me to stay away from fraud gave me all the reasons and all the examples… so when I sit down with me customers or family I am very against fraud… I wont do it.. advice for there good they should stay away from it… well turns out I do and they don’t… there is a Female Loan Consultant working for a very large Bank/lender on the retail side… that is! 100% committing fraud on VOD and VOR… I know this because my family that I denied to do a loan for, where approved ( now living in there new house ) told me how they got the loan. gave me there closing doc’s… after talking to my relatives they told me that the loan consultant was aware of the fraud, because they freely spoke about it….

I have lost 8 deals to just this 1 same lady! Its kind of a stab because she is not playing fair… is me calling her out to her boss unethical? I don’t want to look like a snitch but is there anyway I can report to the banking commission with out been involved? Are there any secret rules of no snitching on other loan officers? Any ways what do you all think…

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

If you heard a gun shot, came around a corner, saw a dead person and me with a smoking gun in my hand, would you call the cops or would you say 'hey, it's not my problem.'

I'm of the mindset of it is absolutely our problem. The people that are breaking the law are setting a precident that we can do those things, and that they are ok. The stated income issue, the appraisal issue, residency issues, these are all things that need to be dealt with.

ken(TX) · Joined: 23 Sep 2005 Posts: 184 Location: Dallas, TX

Andres,

You are in a difficult position mainly because you don't want your family or friends to be impacted by your reporting on this loan officer. Let me tell you how I would approach this.

First, pick just one client you declined that they approved.

Second, document to the best of your ability why you could not qualify this customer, what the customer told you about conversations with the loan officer, etc.

Third, call the bank's corporate office and ask them who you talk to in order to report a case of fraud by one of their employees. I can promise you this won't be blown off by the bank. Furthermore, they will conduct their own investigation.

I know that this isn't easy but you do have to make a stand. You can also involve the state licensing authority but if this is a bank, your best bet is to call the bank directly at their corporate office.

Good luck and turn this person in!

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

One thing that I would say is absolutely make sure you know what you are presenting before you progress forward. Sometimes some lenders *can* do things that others can't, and that's a simple fact of life. But, for example, if you know that they have $2000 in the bank and make $3500/mo in income, and they listed that they've got $30,000 and have an income of $7,000 because it's 'stated' and it's on the app, there ya go.

Be careful, you don't want to get your family member included in the suit.