I disagree with what you said about looking at an employers accounts. It could well be that the mortgage applicant is unaware that their employer is facing financial problems in the near future and this could not only save the lender a bad loan but save the borrower from entering into a mortgage agreement blind.
Any mortgage lender has a duty to their depositors and shareholders to fully appraise any loan applications and looking at any publicly available information that helps them access accurately is not going too far. Perhaps if more of this had been done before we wouldn’t all be in this mess.
I would tend to agree, but there were not adequate quantitative methods used other than looking at net profit carried forward which doesn’t really tell you anything, the ethics and probity behind your comment are spot on, it was the exercising of this – in the examples we have seen – which are blindingly inadequate and borderline in use at best.
I disagree with what you said about looking at an employers accounts. It could well be that the mortgage applicant is unaware that their employer is facing financial problems in the near future and this could not only save the lender a bad loan but save the borrower from entering into a mortgage agreement blind.
Any mortgage lender has a duty to their depositors and shareholders to fully appraise any loan applications and looking at any publicly available information that helps them access accurately is not going too far. Perhaps if more of this had been done before we wouldn’t all be in this mess.
I would tend to agree, but there were not adequate quantitative methods used other than looking at net profit carried forward which doesn’t really tell you anything, the ethics and probity behind your comment are spot on, it was the exercising of this – in the examples we have seen – which are blindingly inadequate and borderline in use at best.