CASE STUDY
Read the following case study and then answer the following
multiple choice questions in the “Comments Section” below.
Steve
has been a licensed mortgage broker working for a company called Ravenswood
Mortgage for about a year now. And, over that time, Steve has been steadily
locking down his own methods for closing loans. Some of his strategies are
solid and sound and some of them… well….
Let’s
look at one of his latest transactions as an example.
A
borrower named Vickie comes to Steve for a mortgage loan. She was referred to
him by her real estate agent Patricia—whom Steve has worked with quite a few
times.
Steve
takes her application information, and then sends Vickie on her way. After she left Steve realizes that he forgot
to have her sign an agreement about third party services, so he decides to sign
it for her. Before he submits her materials for underwriting, Steve looks over
the application one more time and, seeing everything is in order, he submits
it.
Coincidentally,
Steve has a fly-fishing vacation scheduled for the following week. So just to
make sure things move along smoothly with Vickie’s loan while he is gone, Steve
asks his buddy and co-worker Fred to look after Vickie’s file because Steve
will be out of cell phone range and away from Internet access. In exchange for
his help, Steve will pay Fred $200 out of the loan commission – just for
keeping Vickie’s loan on track.
During
Steve’s vacation, Vickie mistakenly sends the check intended for the appraiser
to Steve. Fred does not notice the check because he is dealing with a licensing
issue of his own. Specifically, after fifteen years as a mortgage broker, for
the first time, Fred’s license has not been renewed because he has fallen
woefully behind on child support payments.
When
Fred notifies Bev, the principal broker, about his license suspension, she
tells him that the law allows a 20-day grace period to remedy the problem that
caused the suspension. Bev advises Fred to, at least, finish up any files he is
currently working on because the office is shorthanded right now and they need
to keep their loans on track.
So,
in scrambling to deal with reinstating his license, Fred forgets to keep tabs
on Vickie’s loan. So, after sitting on Steve’s desk for five days, Steve comes
back, finds the check in a stack of mail, and forwards it on to the appraiser,
along with an explanation of the situation.
A
few weeks later, Vickie’s loan is approved and they go on to close on time.
And,
even though he nearly dropped the ball with the appraisal check, Steve decides
to honor his promise to give Fred the $200 bonus for helping out with Vickie’s
file. After all, Fred really needs the cash right now.
Steve lets out a huge sigh of relief at getting Vickie’s
loan approved on schedule, but there are some questions we should ask here.
- What do you think of Bev’s advice to Fred about his license woes?
A. She gave him good advice. His current
clients shouldn’t suffer because his license has been suspended.
B. She gave him good advice. He does have
a 20-day grace period to get his child support payments up-to-date and
reinstate his license.
C. Bev gave him bad advice, and she and
Fred are both breaking the law.
- Was the kickback Steve offered his co-worker Fred to watch over Vickie’s loan while he was on vacation legal?
A. The payment could have been illegal if
Fred had actually done any work on Vickie’s loan because his license had been
suspended.
B. The payment was legal because it was a
little incentive among friends.
C. The payment was illegal because Fred
forgot the appraiser’s check on Steve’s desk for nearly a week. In effect, Fred
was being paid a fee for a service that he did not perform.
3. What did
Steve do wrong regarding doing Vickie’s application process?
A. Steve did
nothing wrong
B. He didn’t
disclose that third-party services would be involved
C. He had Vickie sign blank pages
C. He had Vickie sign blank pages
Students should post directly to the Blog! If you have any problems posting your assignment to the Blog (due to firewall issues etc.), you may send your answer directly to the instructor via email at oil@mymortgagetrainer.com
No comments:
Post a Comment