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Solving moral dilemmas in mortgage origination

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Editor's note: This article is part of an occasional series on ethics in the real estate business. The writer will tackle timely issues and take ethics questions from readers at opinion@inman.com. Consider the following case: Bill and Shannon are friends as well as mortgage loan underwriters who work at competing companies. Bill shares details of a challenging loan that he recently declined. A few days later, Shannon receives a file on her desk from a loan originator at Bill's company and recognizes it as the loan Bill recently declined. Unfortunately, there is a significant document missing. Without this document, the borrowers qualify. What sorts of ethical considerations should Shannon consider as she decides how to handle this case? Let's see if we can develop a rational methodology that Shannon could use to solve her problem. If we strive toward high ethical standards in the mortgage lending industry but the applicable codes of ethics are vague, ambiguous or incomplete, it can be ...