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Mortgage Fraud Essay

1636 words - 7 pages

Michael Morris
Case Study number 1
Prior to the 2008 financial crisis the price of a typical United States home had increased by 124 percent (UNC). This appreciation of homes leads to borrowers obtaining subprime adjustable interest rates for a set period (UNC). This money lending boom led to a situation that Coleen Colombo and five other female employees of BNC found themselves in. Coleen, a senior mortgage underwriter that was routinely receiving “exceed expectations” on her performance reviews, started seeing a troublesome pattern. Coleen alleges that in 2005 a male mortgage wholesaler began bringing her questionable loan applications that contained incorrect applicant ...view middle of the document...

This harassment was not an isolated occurrence and five of Coleen’s former female coworkers joined her in the lawsuit.
Recommendation number 1.
Alison Doyle defines sexual harassment as a form of discrimination that includes uninvited comments, behavior regarding sex, gender, or sexual orientation (Doyle). A good example of sexual harassment is when unwanted conduct interferes with a person’s job performance and success; it is considered unlawful. This is the situation that Coleen found herself in. The coworker who attempted to bribe her into approving fraudulent loans started making her fearful and was initiating unwelcome physical contact by rubbing on her. I am not sure what type of sexual harassment policy Coleen’s company had, if any, but this policy is vital to preventing unacceptable behavior. Part of BNC’s human resource programs should have included a sexual harassment policy. This policy should define inappropriate behavior, examples of this type of behavior, a statement that sexual harassment is against the law, disciplinary routes, and a brief summary of options that will assist an employee (Power). Clearly this type of behavior was offensive to Coleen, so at the first hint of harassment, she needed to immediately tell the harasser to stop that unwanted behavior. Her statement needs to be firm and very clear, she is sending a message that this type of behavior will not be tolerated (Essortment). A logbook should be kept of the situation and the exact wording of the conversation. In the event that the behavior continues, then Coleen needs to notify her manager and at the same time she should approach a human resources manager (Essortment). It sounds like Coleen didn’t have a strong workplace sexual harassment policy and she was forced to band together with her colleagues and file the lawsuit. The fact of the matter is that the inappropriate behavior should have never been allowed to start, and management should have shut it down immediately to protect them against litigation.
Finding of Fact 2: Bullying in the workplace.
When her coworker attempted to bribe Coleen into underwriting an obviously fraudulent application, she reported his actions to her manager. The regional Vice President chose to address her concerns negatively in a meeting, forcing Coleen to leave in tears. She was humiliated and brushed off. Her concerns were not addressed or investigated. This upset her greatly and she took a leave of absence. Upon her return her coworkers seemed to turn on her and she felt like her job was being threatened and that her work was being interfered with. Her branch manager told her that one of her coworkers wanted her fired for initiating the allegations of mortgage fraud. During the same time on of her female coworkers was having files go missing and was told that they “would make an example of her” for also refusing to accept spiffs. Her income plummeted with her refusal.
Recommendation number 2.
Sally Kane writes that...

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