Jim Cameron of the Stratmor Group on the cultural divide that distinguishes loan officers

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To understand this phenomenon, he focused on a subset of retail mortgage loan branches – the so-called Expenditure Management Branch (EMB), which he described as “regular” sales offices.

He said, “There used to be network affiliates that didn’t really work all the time, they had structures (which) were simply not licensed and licensed to issue FHA or VA loans. “

According to him, the unscrupulous will look for a sponsoring parent organization and actually rent a license from the sponsor.

“They will keep their employees at the branch; they will own all the assets of the branch; everything will be done on behalf of the branch manager and they just pay the fee to the parent company. This would allow them to take advantage of the parent company’s license and issue FHA loans, ”he explained.

While this was not strictly illegal activity, it did violate the spirit of the FHA loan regulations.

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