Requesting career/ethical advice

[Vollkommen Warrior]

Hi All, It is late so I will make this short. I have been offered an opportunity to make a lot of money. No one who has worked at this place of business has made less than $200,000 last year. It is a mortgage company dealing with people who have B,C, and D credit or bad credit.

This company consolidates their bills for them using the equity in their home. Hopefully these people begin on the right track and start saving and being more wise with their money after this but I know the statistics, 90% don't. They continue back down into the same hole and end up claiming bankruptsy anyway and many don't even care. The market charges more for these loans than good credit people because the loans are harder to do and the companies require a minimum number of points.

Is this ethical or is this the wrong business to get into? Personally, I would offer them advice at the end of each loan on how to stay out of this hole. All the while I know the mortgage company could have charged the customer $3,000 instead of 6 or 7k to do the loan. Althought there is a lot of running around and jumping through hoops, is this right or am I looking into it too much. This is the industry average or norm although I am not exactly certain as to why because I have never done one of these loans. Thanks in advance.

 

[goodgirl]

hey Spock, I worked for a few months at such a place, so let me weigh in:

Do they have to sign a foreclosure document in advance, and if so is that the norm in the state you're in? For instance, in GA if you buy a house, no matter who you are you have to sign a document basically titling the house to the creditor if you should miss a payment. Theoretically this can be widely abused and it also seems to void the constitutional right to a fair trial -- because even if you sign it, you're signing it under duress IMO. However, that's how things are done if you want to buy a house in GA. In NC it is NOT the norm and the place I worked required it of its clients. I think that was wrong.

Look at the laws closely, how they apply to EVERYONE, and then see if what's done at this business is fair. Also, make sure you are at liberty to counsel these people as you want to do... my advice is, print up some brochures or fliers and put them in the closing packet -- IF it's allowed. If that's discouraged or not allowed, that tells you a lot about the ethics of your bosses.

There are many occupations that are almost endemically evil, yet I see no reason to consign those businesses to shysters. The sub-prime lending business needs more good, ethical people in it, not fewer. Perhaps God has put you in this situation so you can help!

 

[Vollkommen Warrior]

Thanks good girl, I will check into that. In the meantime, the company only takes a certain number of points for a loan. For example, they will consolidate lots of debt for the person saving them something like $400 per month, which is a lot to these people. However, the ethical question comes in where they are making say...8 points on the loan.

For example, lets say the rate is 14% just for example(typical higher rates in bad credit) The bank pays us 4 points, this does not come out of the borrower's pocket. Then we charge the borrower 4 points (up to 8 in MD). On a $80,000 loan that comes to $6,400 into the company. The loan officer makes say..$2400 on that one loan. Some of them would charge the borrower 8 points instead of 4 and make say $4000 because the bank is also paying the company 4 points. This is what is the norm for our area for harder or B,C,D loans. The customer is happy because they are saving a ton of money and have a chance to get their credit in order. The loan officer is happy because he/she makes a lot of money.

When I think about the money involved it is astounding. Being on comission is a big risk, there is NO salary. Does it deserve such a big reward though. Like I said, I HAVE NOT agreed to this and still thinking about it before I even consider it. When I look at some of the folks working for this company, they seem to be the kind that would take advantage of their own grandmother. This is another reason I am shying away. Then I think of the money and still wonder. I am leaning AWAY from this propostion. I just want to make sure I have considered it fairly. Thanks.

 

[desi]

Go for it. As a Christian you can counsel from a Godly perspective. Let them know the score and leave the rest up to them.

 

[ForeverChristian]

That is a good thing to offer advice like that. Although I doubt it will work. Although still it would make you be a better Christian.

 

[desi]

That is a good thing to offer advice like that. Although I doubt it will work. Although still it would make you be a better Christian.

As an almost pharmacist I have to counsel about the abortion pill. Initially I refused to dispense it but after prayer I realized I could do a better job than my nonChristian peers. My peers would beat around the bush about what the pill does and downplay the side effects, 'You know what its for so take them all at once and it might make you feel sick to your stomach.' I am honest to a fault. I explain how the drug is an abortifacent which will cause them to have an abortion if they are pregnant. I also explain how taking it is like taking too much birth control pills so it often causes severe upset stomach, if they take it they should keep it down no matter how sick they feel because if they vomit it up the dr will have to call in a refill as it won't work...

 

[Vollkommen Warrior]

Thanks for the replies folks. Maybe I am too negative sometimes. Perhaps I will consider the position after all..

 

[Follower of Christ]

Thanks good girl, I will check into that. In the meantime, the company only takes a certain number of points for a loan. For example, they will consolidate lots of debt for the person saving them something like $400 per month, which is a lot to these people. However, the ethical question comes in where they are making say...8 points on the loan.

For example, lets say the rate is 14% just for example(typical higher rates in bad credit) The bank pays us 4 points, this does not come out of the borrower's pocket. Then we charge the borrower 4 points (up to 8 in MD). On a $80,000 loan that comes to $6,400 into the company. The loan officer makes say..$2400 on that one loan. Some of them would charge the borrower 8 points instead of 4 and make say $4000 because the bank is also paying the company 4 points. This is what is the norm for our area for harder or B,C,D loans. The customer is happy because they are saving a ton of money and have a chance to get their credit in order. The loan officer is happy because he/she makes a lot of money.

When I think about the money involved it is astounding. Being on comission is a big risk, there is NO salary. Does it deserve such a big reward though. Like I said, I HAVE NOT agreed to this and still thinking about it before I even consider it. When I look at some of the folks working for this company, they seem to be the kind that would take advantage of their own grandmother. This is another reason I am shying away. Then I think of the money and still wonder. I am leaning AWAY from this propostion. I just want to make sure I have considered it fairly. Thanks.

Im not a pro so take this with a grain of salt.

Is there anyway you could take this job and maybe turn things around as far as your position goes and maybe do some good and even glorify God a bit?

Ive found sometimes he puts us into the lions den to teach us and strenthen us.

just an opinion.

 

[Vollkommen Warrior]

Good question Follower, I am still pondering this. I have until the end of December pretty much..