Confessions of a Loan Officer - ABC News

http://abcnews.go.com/Video/playerIndex?id=3600112

The above link is for a video that was titled "Confessions of a Loan Officer." The title should have been "Confessions of a Dishonest Loan Officer."

The video is about 2 minutes long and is about a loan officer who worked for a mortgage brokerage in Virginia that specialized in subprime mortgage loans. The loan officer basically states that he knowingly placed borrowers into mortgages that he knew they would be unable to pay. He also had placed these borrowers into 2/28 mortgage programs where the rate is fixed for the first 24 months but afterwards adjusts to a higher interest rate and payment.

I'm glad that this loan officer is no longer employed in the mortgage industry. Although the name of the company he was employed with was withheld in the video, that company should be shut down. There have been borrowers who were able to get their life and credit standing back because of these programs but nonetheless anyone who is placed into a mortgage they cannot afford will be unable to repay the mortgage regardless of the loan program. Unfortunately, most consumers picture mortgage brokers to be the loan officer in the ABC video. Just as there is a bad element in any industry this loan officer and company was a bad element in the mortgage brokerage industry.

It was interesting to hear the lenders were actually promoting the inflation of the borrowers income. Ask the lenders they will say that they had no idea about what was going on and it's was all becuase of the mortgage brokers that they were taken advantage of which caused so many of the lenders to close their doors in the last year. There are decent hardworking mortgage brokers who care for their clients and take their clients short and long term needs into account when recommending particular mortgage programs. For every one of the loan officers like the kid in the ABC Video, there are at least 5 who would never think about doing what this kid did.