What is my responsibility in the mortgage crisis?
Let me explain... in case you have not heard, the financial sector, namely, the real estate/mortgage industry is walking on the proverbially "dangerous ground." With billions of dollars in mortgages backed by people with little to no credit or ability to pay their creditors, the skyscrapers of elusive wealth seem to be disappearing in the fog. The main reason for this is simply good old fashion "greed." People hoping to get rich quick sold loans to people who couldn't afford them. Some did get rich. Some got really, really, really rich.
Indeed there are two parties to blame here. Yes, the ones who sold their souls to the green grass on the other side of the Jones' fence are just as guilty as the ones whose eyes twinkled green when they saw the opportunity to pounce and the Jones' discontented neighbors. The business is not good. Projections are being made that we may begin to recoup in late 2009. Nonetheless, at this time we continue to read of trouble and more trouble on the way. Fannie Mae, Freddie Mac, IndyMac, Wachovia, American Home Mortgage, Countrywide, Merrill Lynch, AIG, are all among the monstrous corporations burning out as fast as they burned up.
My job feeds this industry. My job provides services these banks and lending institutions and mortgage backers need. My job does not ask its clients these hard questions like, "Is your company's lending ethic in line with equity, justice, and all around fairness?" Or "Do you have the best interest in mind for both parties entering into the agreement?" Or "Does your lending institution's lending practices seek to extort, enslave, and enrich itself at the expense of another's quality of life?" I have heard numerous stories about incentives and bonuses for loan analysts and underwriters who approve so many loan applications. I mean consider this: The more loans you close the more bonus money you receive. The faster you disburse money, the higher your bonus check for the month. So, if you sold those loans, and realized the huge bonuses you amassed, would you not simply approve as many as possible to ensure the bonuses? I would. I would seek as little proof as possible concerning the applicants ability to repay the money. I would sell loans to people who's credit was poor (i.e. sub-prime). This was the mindset of several of the large lending institutions who are now realizing that the "money" the gave out would not return.
What responsibility do I have to the market? I understand that my company is not the real monster. They really are simply trying to make a fair living providing fair services where there is a spot in the market. But we are Christians. Should we provide monsters with services that do not have the customer's best in mind? Should we provide services to people whose eyes are so green they cannot see the light of day? Should we give our energy and efforts to support a system of injustice and inequity and ultimately the financial ruin of thousands of families? I don't know the answer to the question.
Let me explain... in case you have not heard, the financial sector, namely, the real estate/mortgage industry is walking on the proverbially "dangerous ground." With billions of dollars in mortgages backed by people with little to no credit or ability to pay their creditors, the skyscrapers of elusive wealth seem to be disappearing in the fog. The main reason for this is simply good old fashion "greed." People hoping to get rich quick sold loans to people who couldn't afford them. Some did get rich. Some got really, really, really rich.
Indeed there are two parties to blame here. Yes, the ones who sold their souls to the green grass on the other side of the Jones' fence are just as guilty as the ones whose eyes twinkled green when they saw the opportunity to pounce and the Jones' discontented neighbors. The business is not good. Projections are being made that we may begin to recoup in late 2009. Nonetheless, at this time we continue to read of trouble and more trouble on the way. Fannie Mae, Freddie Mac, IndyMac, Wachovia, American Home Mortgage, Countrywide, Merrill Lynch, AIG, are all among the monstrous corporations burning out as fast as they burned up.
My job feeds this industry. My job provides services these banks and lending institutions and mortgage backers need. My job does not ask its clients these hard questions like, "Is your company's lending ethic in line with equity, justice, and all around fairness?" Or "Do you have the best interest in mind for both parties entering into the agreement?" Or "Does your lending institution's lending practices seek to extort, enslave, and enrich itself at the expense of another's quality of life?" I have heard numerous stories about incentives and bonuses for loan analysts and underwriters who approve so many loan applications. I mean consider this: The more loans you close the more bonus money you receive. The faster you disburse money, the higher your bonus check for the month. So, if you sold those loans, and realized the huge bonuses you amassed, would you not simply approve as many as possible to ensure the bonuses? I would. I would seek as little proof as possible concerning the applicants ability to repay the money. I would sell loans to people who's credit was poor (i.e. sub-prime). This was the mindset of several of the large lending institutions who are now realizing that the "money" the gave out would not return.
What responsibility do I have to the market? I understand that my company is not the real monster. They really are simply trying to make a fair living providing fair services where there is a spot in the market. But we are Christians. Should we provide monsters with services that do not have the customer's best in mind? Should we provide services to people whose eyes are so green they cannot see the light of day? Should we give our energy and efforts to support a system of injustice and inequity and ultimately the financial ruin of thousands of families? I don't know the answer to the question.