Nobody Loves a Lender

My first job after finishing college was working at a small bank interviewing applicants for mortgage loans. My clients were referred to me by large banks that found their credit rating unacceptable. The job was easy and as long as the applicant had some means of making the payments they were accepted. All of my customers were trying to better themselves by having the financial security of becoming a homeowner. Many times I overlooked obvious false statements on the application in order to approve the loan. It made me happy to give somebody the opportunity to own a home. The high rate of interest I charged along with the small down payment was a smart business deal for my boss and was helping him get rich. My pay was good enough to buy a new Caddy Seville and the best of everything.. But After seeing so many of my clients having their homes foreclosed I began to feel guilty and could not sleep at night. I handed in my resignation and told my boss the reason why I was leaving. He said that I was wrong to feel guilty and explained to me why my job was ethical. I will repeat what he said:

"There must be lenders available that make loans to high-risk borrowers and therefore have to have high rates and fees. A mortgage seeker who is turned away from a bank because of poor credit history has to be given a chance to become a homeowner. There is nothing wrong with the lender that gives a borrower that opportunity by offering a higher interest rate. The transaction is of a voluntary nature and. the borrowers make the choice. If one has a poor credit history, then the choices are limited and there is no place to get a loan except with a high interest lender. Is that the fault of the lender? Did someone drag or drug the borrower and force them to accept the loan?".

I did not agree with my boss and quit, soon I was hired at a national bank as a loan officer. But my guilt followed me to the new job because many of the applicants for a mortgage were low income people with a bad credit history, and were not acceptable for a loan. I felt bad when the manager turned them down. Some said the bank was guilty of redlining or racial discrimination, but the bank refused to change its policy. It was then time to look for new work because I decided that working as a loan officer was not for me. The next job I took was as an accountant in the garment centre, five years later I applied for a low interest mortgage loan and became a homeowner. But I will always remember those that were not as fortunate.
melpol