What fraud are they trying to weed out?
It is only broker fraud if I had to make a guess.
Mortgage originators as a group have lowered their standards of information necessary to fund a loan.
They have been turning a blind eye towards the broker's borrower information.
They have elminated the simple step of verifying such extremely difficult
tasks such as verifying employment and wages. Whatever the broker says stands unverified. Of course, they do that to reduce their own costs of processing a requested loan.
They could eliminate broker fraud in a heartbeat by simply verifying the information that is submitted on a loan application. What would it take?
Everybody acts like it is a big surprise fraud is being commited except that we know our politicians, law enforcement, FBI, Justice Department, Banking
Regulators and every other party who should be interested in the information,
disregards borrower complaints until or unless it affects corporations bottom line and they pay even more attention when it affects wall street.
If we can figure out what is wrong with this picture and we have.
We have to wonder why these same people are so uninformed.
They seem shocked. They seem dismayed. Oh puhleeeze.
Business ethics are a thing of the past. I don't think you can mandate
ethics but you sure can legislate regulations that would prevent the blatant
non-ethics of this industry from originator to loan servicer.