Essay on Coleen Colombo and Colleagues Resist Mortgage Fraud

1761 Words Sep 22nd, 2013 8 Pages
Coleen Colombo And Colleagues Resist Mortgage Fraud
Columbia College

Coleen Colombo and Colleagues Resist Mortgage Fraud
Synopsis
In 2003, Coleen Colombo joined the California branch of BNC, where she worked as a senior underwriter. The BNC office in which Colombo worked was part of the regional group that offered a considerable amount of loan to its customers. The performance of Colombo in her work was outstanding. This is according to a wrongful termination and harassment suit filed in California Superior Court on her behalf and on behalf of five other BNC employees. The suit states that the work environment began to become hostile for Colombo in 2005 after one of her fellow employees, a male wholesaler,
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Colombo’s case together with that of five other employees was put on hold after the owner of BNC, Lehman Brothers, filed for bankruptcy in late 2008. The company dismissed the allegations made in the suit arguing that they would contest them on the merits in the pending litigation. Meanwhile, the sub prime loan began to go bad, making the lives of thousands of wholesalers in the company very difficult, thus forcing them to quit from the company. Wall Street reined in the company’s mortgage factories, pulling credit lines, tightening its lending principles, and compelling lenders to buy the same risky loan it once consumed. In essence, the company was in the verge of collapse.
Finding of fact #1: The first finding of fact in this case involves corruption in the company. According to Sylvia Vega-Sutfin, a former employee of BNC, the bribes known as spiffs are common in the company. She states that most of the underwriters in the company demanded bribes so that they can approve the loans. These claims of corruption or bribery are supported by Colombo, who claims that one of her fellow employees, a male wholesaler, brought her loans with questionable information such as incorrect salaries and home values, and that the male wholesaler even tried to bribe her so that she can allow a loan with incorrect information to be approved.
Recommendation #1: It seems the aspects of bribery and corruption have become part of