The Change Company, a nonbank lender, was recently accused of making false representations on borrowers race, ethnicity, and income level, according to a noted industry professional. Adam Levine, a veteran mortgage executive and the CEO of Ready Mortgage, was adamant in saying that this goes against all industry standards and practices. It signals a dangerous trend which, if not addressed promptly, could have longer-term consequences.
The mortgage industry has seen a dramatic increase in nonbank lenders. The openness of the market to growing competition is beneficial for borrowers looking for more options. However, lenders must adhere to the same set of standards as traditional institutions, and violations in this area can have serious implications on the mortgage market. False representations on borrower information is illegal, resulting in incorrect disclosure of borrower information. This is not only a potential violation of consumer trust but also has potential to create further chaos and disruption in the mortgage market.
Key Elements:
• Industry expert Adam Levine of Ready Mortgage accused The Change Company of making false representations on borrower information
• Breaking industry standards and putting the mortgage industry at risk
• Increase in nonbank lenders creating more options for borrowers
• False representations on borrower information is illegal and could result in incorrect disclosures of borrower information
• Violations have potential to create further chaos and disruption in the mortgage market
You can read this full article at: https://www.housingwire.com/articles/ex-chief-of-staff-accuses-the-change-company-of-mischaracterizing-loans/(subscription required)
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