Yesterday I happened to hear the NPR story describing how a Countrywide loan officer coached a prospective borrower to lie on her mortgage loan application. It’s a must-listen if you haven’t heard it.
If you think mortgage fraud problems — misrepresenting loan details, credit score manipulation, and overcharging — are a think of the past, this will remind you that you can’t be too careful when shopping for a home loan. Think about it. You have some loan officers who made a lot of money — a lot of money — over the past few years, who are now hurting for income. Do you think they all have just seen the light?
Honest loan officers had it more difficult during the heydey because they wouldn’t recommend inappropriate loans, or help their clients fudge facts. Now they find themselves telling some borrowers what they definitely don’t want to hear, “I can’t help you.” But that’s a lot better than telling someone to take out a loan that a couple of years down the line will only mean much bigger problems.
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