Mortgage Meltdown

[JOEBIALEK]

Until recently I was an underwriter for a sub-prime mortgage company that is about to close. It seems that most media outlets and government officials fain ignorance about the real underlying cause of the problem. There is either a tendency to blame the borrower or act as though no one in the industry {or outside of it} saw this coming. They fail to mention that those who gained the most financially got off scot free while leaving the mess behind for everyone else to clean up. In my former company, the sales managers and loan officers "held the keys to the safe" while deciding which guidelines to ignore sometimes going so far as to bribe fellow underwriters to "look the other way". Sales managers often overrode an underwriter's decision they did not agree with. Other times fellow underwriters would be threatened with their job for "impeding company growth and progress" just because they refused to go along with the flagrant disregard of guidelines . I complained to the sales managers about the bribing but all I got was a formal write-up for making "inappropriate comments".


There was absolutely no support from the owner of the company all the way to the human resource representative. This company is as corrupt as they come. I can't tell you the number of sexual affairs that occurred between married and unmarried people; primarily among the management staff {at the workplace itself}. Promotions were strictly political thus moving people "up the ladder" who never proved themselves worthy or were on a final written warning to be terminated {for poor performance}. As a result of the corrupt management of this company, I and several hundred others were laid off. I believe the federal government needs to investigate this company and bring to trial those corrupt individuals who broke the law. This would set an example for the rest of the mortgage industry that absolute corruption corrupts absolutely.

[JOEBIALEK]

replies? does anyone have any thoughts?

[Tino3]

Wow! That sounds like movie plot! Could this be for real? Probably, and more. What an experience for you. How sad for the economy and our society in general. Thanks for sharing.

[collie]

Check out Meriden's Housing Report released Sept. this year - it is part of the Plan for Conservation and Development Commission and can be found under Municipal Services, then click on Domonic Caruso' page (think it's Development and Enforcement) to find POCD. Meriden is predicted to have lots of foreclosures in the area of those (note the disparate rate on Hispanicas and Blacks affected) who have subprime housing loans in Meriden. I read your entry some months ago when you first put it up and of course I believe you. Sub-prime lending needs to go I think given the rampant abuses of consumers. Preying on the have nots is an American tradition unfortunately so I'm not hopeful too much will change, really. Let's put it this way - the City of Meriden has, in its own report, indentified that the most vulnerable of our citizens will be losing their homes. Seen anything being done? Of course, not. Not even an informational effort. Disgusting, but predictable. I have heard of some work places like yours. People choose to handle it differently. I for one would have made a big stink too. Situations like that are astounding because of the juvenile peer pressure involved. One really has to make it clear from the get go in our society that we aren't going there, loud and clear or they expect to drag you into their mire.

[Marc Syrah]

:D This was first posted nearly one year ago....
And today we are where? :eek:

[RC12L4]

Until recently I was an underwriter for a sub-prime mortgage company that is about to close. It seems that most media outlets and government officials fain ignorance about the real underlying cause of the problem. There is either a tendency to blame the borrower or act as though no one in the industry {or outside of it} saw this coming. They fail to mention that those who gained the most financially got off scot free while leaving the mess behind for everyone else to clean up. In my former company, the sales managers and loan officers "held the keys to the safe" while deciding which guidelines to ignore sometimes going so far as to bribe fellow underwriters to "look the other way". Sales managers often overrode an underwriter's decision they did not agree with. Other times fellow underwriters would be threatened with their job for "impeding company growth and progress" just because they refused to go along with the flagrant disregard of guidelines . I complained to the sales managers about the bribing but all I got was a formal write-up for making "inappropriate comments".


There was absolutely no support from the owner of the company all the way to the human resource representative. This company is as corrupt as they come. I can't tell you the number of sexual affairs that occurred between married and unmarried people; primarily among the management staff {at the workplace itself}. Promotions were strictly political thus moving people "up the ladder" who never proved themselves worthy or were on a final written warning to be terminated {for poor performance}. As a result of the corrupt management of this company, I and several hundred others were laid off. I believe the federal government needs to investigate this company and bring to trial those corrupt individuals who broke the law. This would set an example for the rest of the mortgage industry that absolute corruption corrupts absolutely.

You just described corporate America not just the financial industry.

[arahant]

When you run any business poorly the outcome is inevitable. Sorry you and so many others were caught in the mess.

[S_Meriden60]

I have a friend that works on property transfers. At this point in time there are 400 property foreclosures in Meriden.

[iwantwallingfordbetter]

so the question is...other then in the forum...did you notify anyone important about the problems....or did you just ride the wave of good times and now choose to complain about it.