Monetary Policy and Mortgages
The businesses of mortgages lead to their own problems. Recently it was stated by the attorney for the Western District of Missouri that the owner of a mortgage invest company and three employees of Ameriquest Mortgage were charged with an indictment. The effort made by them was to cheat Ameriquest and some investors through the process of false loans for mortgage. Brent Michael Barber who is 40 years of age is the owner of Somerset Homes and Investment Company as also previous owner of The Beef Pit, a Grandview, Mo., restaurant, along with Chauncey Joseph Calvert, aged 34, Avonda Lynn Nicodemus, aged 32, and Roderick Neil Criss, 33, all former employees Ameriquest in Gladstone, Mo., were named in a 62-count indictment given by a federal grand jury in Kansas City. The main accusation was that these individuals had planned to cheat Ameriquest and other investors from the period May 1999 to December 1999. (Three Former Mortgage Company employees Indicted for $4 Million Fraud Scheme)
The process was to get money from the mortgage company through false loan applications and inflated values of property. In the process of cheating, the accused induced some individuals to purchase or obtain loans for the purchase of real estate with a promise that the chief among the accused would get them individuals to rent or buy the properties within a short period. The charge also alleged that the investors would end up paying no money from the properties but would get a portion of the fees that would be paid or a percentage of the profits. (Three Former Mortgage Company employees Indicted for $4 Million Fraud Scheme) This clearly indicates that getting a mortgage and buying a property in America is a highly profitable business today.
The situation is such that some companies like Annaly Mortgage Management, Inc. have decided to institute a code of conduct for their employees. This is also expected to ensure that the proper ethics are maintained and all rules, laws and regulations of the government are observed. These are expected to lead to the success of the company. The company believes that integrity and accountability will lead to a success for the company. Every employee of the company has to follow the rules and any exception can only be made by the Board of Directors and that will also have to be informed to the shareholders as is required by law. Any violation of existing laws, rules or regulations by any employee, officer or director has to be reported immediately to any other officer of the company. In the case of doubts, guidance should be taken from seniors. When a situation of conflict of interest of an investment with the interests of the company happens, the investment should be avoided. (Annaly Mortgage management, INC Code of Business Conduct and Ethics)
The meaning of conflict of interest here is the benefit of any project going to any individual at the expense of the company, or it appears that it is happening. Other conflicts happen when an employee, officer or director has to take action that makes work difficult for the individual. It may also happen when an employee receives benefits for himself, or others related to him through his being in that position. The benefit may be from the company or an outsider. The information within the company has to be kept secret except when it has to be legally disclosed. Before disclosures, it is important that legal counsel be obtained. There has to be fairness in dealings carried out by the employees with all types of outsiders like parties, vendors of properties, and competitors. The employees should not try to gain entertainment and gifts from others through misuse of their position. Some types of gift like cash, a gift not given in line with present practice, or of very high value should not be accepted. The gifts should not have a chance of being felt to be a bribe, payoff or kickback, or violate any laws or regulations.
The employees should be very careful about violations of the laws on insider trading. This is mainly connected with the company's stock and for any trading in it by employees of all varieties, there has to be approval by the Chief Financial Officer of the company or the legal counsel. According to laws, the company is to make full, fair, accurate, timely and understandable disclosures in all reports that it submits to the SEC or also in all public communications....
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