Has anyone else been thrown under the bus?

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Comments (3)

kay in Fairfax, Virginia

75 months ago

With investors trying to find any reason to have loans bought back by originating lenders is anyone in my boat? Loans that were closed over a year ago and coming back from investor (because of non-performance) are being fully blamed on underwriters. The greed to get loans approved for any reason and the loans go "belly up" has cost me my position.

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24 yrs experience in Rushville, Indiana

74 months ago

kay in Fairfax, Virginia said: With investors trying to find any reason to have loans bought back by originating lenders is anyone in my boat? Loans that were closed over a year ago and coming back from investor (because of non-performance) are being fully blamed on underwriters. The greed to get loans approved for any reason and the loans go "belly up" has cost me my position.

Haven't had this happen yet, but we can feel it coming. It really stinks. We underwriters did not develop loans with 100% financing and no income verification, but we were told to follow those guidelines from mgmt, weren't we?? Mgmt wanted loans approved and told underwriters to approve them - everyone got their cut of $$$, mostly the loan officers receiving high commissions and the managers receiving bonuses. Now when things have gone bad, they are blaming the peons who were forced to approve the loans in the first place.

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wanda in Tempe, Arizona

69 months ago

I've been an Underwriter for 20 years and I consider myself very sound and reasonable. But it is so true about the greed and management (who at times knew less than I did)not following the written guidelines on the most blatant situations. Or we would require conditions that would be needed to explain the file to only have it waived because some loud mouth LO or broker is buddy buddy with management. I realized that the industry didnt want to hire knowledgable UWs because we would question the fraud or questionable documentation. Management and UWs who didnt care and did favors are the ones to blame for this crisis when it comes to making good loans. It was bad enough that we were given the ability to do no doc, no ratio and stated loans. But had they been used for its purpose and not to be taken advantage of we may not be in this national mortgage crisis. I took pride in the loans that I approved and cautious of the ones I declined but whenever you allow production to influence quality production will always win!! Unless you have strong management with backbones !!! If there was a way the strong UW could all come together to make a stand to tell what happens behind each loan to the public as a whole I would be in the first row, because it is frustrating and a huge disappointment for me. When this is all said and done and the industry bounces back. I will open my own mortgage company and run it the way I think it should be with the customer not being taken advantage of giving them a pleasant experience of owning a home. Greed creates stress and UWs are very stressed from greedy lenders, mortgage brokers and realtors.

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