Sex, Lies and Mortgages: “I didn’t want to be a mortgage slut.”

This story has nothing to do with technology but it is so outrageously good that I have to link to it.

Basically, here’s another twist on the mortgage debacle. The hunger to package loans into securities was so great during the real estate boom that some wholesalers offered sex to mortgage brokers in order to persuade them to let them buy their pools of loan applications.

Here’s a snippet:

“Multiple wholesalers began inundating mortgage brokers with offers for the same applications. Some brokers chose to exercise their power by asking for something extra in exchange for their business: sex.

Dozens of former brokers and wholesalers say the trading of sexual favors was so common that it came to be expected. Lane recalls one visit to a mortgage brokerage near San Jose (Calif.) in which the manager lewdly propositioned her in his office. She says she declined the advance, and he didn’t sell her any applications. But other female wholesalers didn’t have the same qualms about crossing the line. “Women who had sex for loans were known very quickly,” says Lane, who left New Century before it failed in 2007 and now works as a $200-an-hour life coach and motivational speaker in New York. “I didn’t want to be a mortgage slut.”

Read the rest of the story here by my BusinessWeek colleague Mara Der Hovanesian.

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3 Responses to “Sex, Lies and Mortgages: “I didn’t want to be a mortgage slut.””

  1. Dr. Mortgage Says:

    There is more to the story than foreclosures and modifications; the untold story is the slow and increasingly complex mortgage origination industry.

    Are buyers are using banks, brokers, correspondent lenders and even net branches to originate their loans? Do they know or understand the real differences? Does the media? Does the public know how each type of mortgage company impacts rates, funding times, and even the approvability of loan files?

    The Mortgage Coach: A Consumer’s Guide to Finding the Right Mortgage, is designed to answer just those questions. Its partner workbook, a guide to the Neighborhood Stabilization Program ( NSP), will help consumers navigate the often hard to access NSP down payment assistance program.

    The Mortgage Coach can be found at Amazon.com. or downloaded instantly on Smashwords.com.

  2. Lucretia Castellani Says:

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