Was this Against the Law?

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My mortgage broker sent in a credit application, with out any signatures or initials from the borrower or co-borrower. The loan was approved on the unsigned application. Is this legal? This is in New York.

If Bank of America does takeover Countrwide Financial, what will happen to all their employees? The transaction is soley for the servicing potfolio. 90% of Countrywide’s loans were bought or originated by their wholesale division. Bank of America does not have a wholesale division anymore. BOA has been very vocal about their dislike of the wholesale business and mortgage brokers. Obviously all their wholesale reps will need to go elsewhere, but where will all the retail reps be placed? Bank of America already has a very exclusive sales force, so they are not interested in taking on any of Countrywide’s junk. One Bank of America loan officer produces the same as 5 Counrtwide loan officers, so obviously BOA is more concerned with quality that quantity.
A Countrywide loan officer in New York has stated that they will all likely end up at First Horizon as they would have a very difficult time adjusting to the banks culture.

Has anyone else heard where they may end up?

  1. Reply
    February 3, 2011 at 5:20 pm

    Of course it is NOT…..

    It doesnt become binding until you sign the document, but he/she CAN shop the loan…

  2. Reply
    dave c
    February 3, 2011 at 5:25 pm

    Much as i hate to be the bearer of bad news generally speaking the cream of the crop will be held and the rest will be dumped.
    This field is cyclical and the amount of loan officers and bank reps will be greatly reduced. If you are a loan servicer your chances are greater to be retained if you are not a member of upper management.
    The masses of people at Countrywide for there own benefit should obtain letters of reference from bosses and favorite coworkers right away. Then the job hunt should happen right away. this will make it possible to not get caught in a down draft when this or any merger activities take place.
    Lets face it new loan activities are not going to be as brisk going forward so that end of this business will shrivel. The servicing to some extent must remain in place so people there will be held onto if it is deemed they are a highly needed asset.
    The other nasty thing is parent companies will combine jobs and duties are they will press there newly acquired asset into higher performance with less recourses. this is pretty typical corp culture.
    I see a number of people in your company getting the stacks of folders on there desk doubled. Majority I see unemployed. Transferring to a new place like Horizons might as well be a firing cause the job could be a geographic change unacceptable to family. It could also be a down grade in pay and job title and a way to let you go slowly over time.
    I think using this opportunity to see whats out there would be a great idea and you can never be hurt by trying to find a better deal in a new place of employ or work. remember get that resume together now and you will be ready! If you leave now after you find a new job you might beat others that are looking in 30 to 90 days from now that are looking in the same areas you are.
    Good luck!

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