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Industry-wide codes of ethics are little more than public relations window dressing unless they are adopted, monitored and enforced by individual companies, panelists agreed at the National Home Equity Mortgage Association convention here earlier this month.
"You can establish all the rules you want," said Manuel Duran, a public interest lawyer from Los Angeles. "But bottom line, it's the individual. They're the ones causing some loans to go bad."
Employees have to be watched - constantly and consistently - added Shanna Smith, executive director of the National Fair Housing Alliance.
"It's unlikely that all your employees follow the rules everyday, so you end up with situational ethics," Ms. Smith said. "But if you do self-testing and self-evaluations, you can identify a problem before it becomes a ...
Source: HighBeam Research, Originators Warned to Heed an Anti-Fraud Message.(Brief Article)