Thousands with criminal records work unlicensed as loan originators

[Jesus Barreto]

A review of thousands of pages of court documents, state industry reports, internal e-mails and police reports shows that from 2000 to 2007:

• 5,306 people with criminal histories became loan originators -- a rate of nearly two a day. Worse, those include 2,201 who had committed financial crimes, such as fraud, money laundering and grand theft.

• Even large lenders hired loan originators with criminal backgrounds. The Miami Herald found that in at least 30 companies with 50 or more employees, more than one in five originators had a criminal record.

• Nearly two dozen people stripped of their licenses as mortgage brokers were able to sidestep regulators by becoming loan originators. Nine others who were denied licenses because of prior crimes or regulatory violations were able to do the same.




http://www.miamiherald.com/static/multimedia/news/mortgage/originators.html

 

[c w d]

A review of thousands of pages of court documents, state industry reports, internal e-mails and police reports shows that from 2000 to 2007:

• 5,306 people with criminal histories became loan originators -- a rate of nearly two a day. Worse, those include 2,201 who had committed financial crimes, such as fraud, money laundering and grand theft.

• Even large lenders hired loan originators with criminal backgrounds. The Miami Herald found that in at least 30 companies with 50 or more employees, more than one in five originators had a criminal record.

• Nearly two dozen people stripped of their licenses as mortgage brokers were able to sidestep regulators by becoming loan originators. Nine others who were denied licenses because of prior crimes or regulatory violations were able to do the same.




http://www.miamiherald.com/static/multimedia/news/mortgage/originators.html

It would be interesting to see the percentage of loan violations/fraud amongst those with criminal backgrounds. In this business I bet it would be right up there with those without a criminal background. Look at the top echelon of these companies. You don't think they didn't break the law, encourage such behavior or setup an environment to promote it do you? Of course they did. While I understand the relevance of this article I'd hate to think more importance if placed on it than on the actions of those who controlled the business environment of this disaster.

 

[Hamlet]

I'd hate to think more importance if placed on it than on the actions of those who controlled the business environment of this disaster.

Exactly! Who hired these criminals?

The lenders master-minded the scam, they hired the individuals to perform the dirty work and are now waiting for the big bail out after making tons of money selling these bad loans to investors.

 

[Kevin Brewster]

This is another good reason why appraisers should never modify their reports just because someone at the other end of the telephone line demands it. I remember taking classes decades ago (before licensing) from old battle scarred appraisal veterans with the American Institute of Real Estate Appraisers and Society of Real Estate Appraisers who told us newbies to never cave into pressure from clients to modify reports. It's gotten to the point now where the untrained and ignorant are telling State licensed and certified appraisers what to put in and take out of a report and are shocked when you tell them no. If you prepared a report for a single property owner and they call you back demanding you modify your report to their liking what would be your response? Why? The only reason I see to modify reports that are well prepared is to make sure you receive future business from the client. Now, if I was an attorney and I wanted to ruin your credibility the first question I would ask when I have you on the stand is "Do you follow instructions from clients telling you to modify completed reports?".

 

[panappr]

Thank You Kevin....

I think this is one of the largest Pet-Peeves concerning most of the AMCs throughout the country.