Ethical Dilemma Report
Keaton Stroud
Professor Arnaud
September 2, 2009
BA 325 Sec. 02
Ethical Dilemma Report
Introduction
The ethical dilemma I will be talking about throughout this report is about how the United States is going through the biggest recession since the Great Depression in the 1930’s, and one of the main reasons of this is because of the housing market. The two leading causes of the housing market causing so much damage is because all these new houses are popping up while houses aren’t even being sold now, and because they are overly inflated by how they are priced. The housing market should be something that helps the economy in the time of struggles, not bringing the economy down more than what it is now.
Dilemma
When people go to find out how to get a loan for a new mortgage they usually look around go to their bank or to a mortgage company to get a loan for their new house. So they sit down and talk to the mortgage broker or loan officer about what they have to do to get a loan for the amount they need to purchase their new house. They end up finding out that they have to do a background check, also they have to fill out papers is that ask them some personal information about their credit history, job history, their income, and also do a police report. So the customer fills out the information that is needed and then all they can do is wait and see if they get approved for the loan that they applied for. If they don’t get the loan the broker usually helps them to find a house that is in their price range so they can live more comfortably. But that’s not how all the brokers think. And those are the brokers that I’m going to be talking about. The dilemma is between the customer and the loan officer. The actually dilemma is that the mortgage brokers were falsifying the information that the customer was giving them, because they knew they wouldn’t get approved for the loan. So the brokers would change their income or their credit history just so they
Professor Arnaud
September 2, 2009
BA 325 Sec. 02
Ethical Dilemma Report
Introduction
The ethical dilemma I will be talking about throughout this report is about how the United States is going through the biggest recession since the Great Depression in the 1930’s, and one of the main reasons of this is because of the housing market. The two leading causes of the housing market causing so much damage is because all these new houses are popping up while houses aren’t even being sold now, and because they are overly inflated by how they are priced. The housing market should be something that helps the economy in the time of struggles, not bringing the economy down more than what it is now.
Dilemma
When people go to find out how to get a loan for a new mortgage they usually look around go to their bank or to a mortgage company to get a loan for their new house. So they sit down and talk to the mortgage broker or loan officer about what they have to do to get a loan for the amount they need to purchase their new house. They end up finding out that they have to do a background check, also they have to fill out papers is that ask them some personal information about their credit history, job history, their income, and also do a police report. So the customer fills out the information that is needed and then all they can do is wait and see if they get approved for the loan that they applied for. If they don’t get the loan the broker usually helps them to find a house that is in their price range so they can live more comfortably. But that’s not how all the brokers think. And those are the brokers that I’m going to be talking about. The dilemma is between the customer and the loan officer. The actually dilemma is that the mortgage brokers were falsifying the information that the customer was giving them, because they knew they wouldn’t get approved for the loan. So the brokers would change their income or their credit history just so they