Ethical Issues in the Mortgage Industry
Fraud is not an acceptable business practice, even though many people in the United States engage in it in order to further themselves and their careers. The finance industry is rife with employees looking to make more money, and they do that by lying or committing fraud.
The mortgage industry is no exception. Considered a crime wave in America, mortgage fraud and predatory lending are on the rise, and even the FBI is taking action to prosecute those who engage in it. States are passing laws to protect consumers. Mortgage professionals are often seen as untrustworthy and even sleazy. It’s become a crisis in the industry.
However, following the laws and acting in an ethical manner is a requirement for mortgage lenders. Companies and professions as a whole have professional standards of conduct that employees must abide by. In fact, a company’s Code of Conduct is typically one of the first things that new employees are asked to review and agree to follow. They can get their license suspended or revoked if they break the law in any way, take advantage of potential home buyers or act in any other type of unethical manner. If they apply for a license renewal, they may get it denied.
Why are mortgage professionals stooping so low? Ethics have little value in the mortgage industry and society as a whole. Increasingly, it seems as though many people lack a moral compass. They want to get ahead in life financially and they are willing to do what it takes to achieve that goal, even if means making decisions that can have costly implications for customers and others affected by these choices.
Contributing to this are new mortgage products that often encourage mortgage lenders to fudge the numbers a bit in order to qualify applicants. In addition, standards have been eased a bit to allow more and more people to buy homes. Home values have also risen over the past five years, making it easier than ever for mortgage lenders to reap great gains if they are willing to take advantage of consumers.
Instead of thinking about themselves, though, mortgage professionals must think about their clients. Every day, they must make ethical decisions. Every time they take an application, they must decide if the programs and rates are the best for the consumer. They should not be encouraging applicants to lie about their income or assets, nor should they place clients in financial jeopardy by qualifying them for mortgages they cannot afford.
Keep Your License With Help From a Tampa Mortgage Lenders Licensing Lawyer
Mortgage lenders must act ethically when working with clients. They make money when a client qualifies for a loan program, so it is not uncommon for lenders to fudge numbers and lie in order to more easily get a client approved for a mortgage.
If you are facing issues administrative issues with your mortgage lenders license, don’t try to handle the situation on your own. Seek powerful representation and protect your license with help from Tampa mortgage lenders licensing lawyer David P. Rankin. To schedule a consultation, call (813) 968-6633 or fill out the online form.