Ameriquest: Making Mortgages a Little Too EasyBy Baselinemag | Posted 2005-09-14 Print
Ameriquest automated the heck out of its mortgage-approval processes. It cut more than half the steps in the process, making approvals faster and easier. But it also cut a lot of the steps it used to use to prevent fraud and overcharging. Guess what happeWhen Ameriquest put in place an automated system to speed mortgage processing, it cut more than half of the 50 steps used to administer loans.
However, it also eliminated some of the checks that verified that the information on an application, such as a borrower's salary, was accurate.
Former Ameriquest loan officers charge that fellow mortgage processors took advantage of the situation to push through loans for borrowers who weren't qualified to receive them—often at inflated fees.
Mark Bomchill, for example, worked as a loan processor at Ameriquest in 2003.
He says he was driven to quit not only by questionable loans, but by the unabashed joy his colleagues took in getting the highest possible rates from unsuspecting borrowers.
"These guys were cheering and high-fiving each other before the clients even got to their cars in the parking lot," he says.
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