Ethnic and racial minorities have been a major element in the agenda of civil rights in the United States. Civil rights activists have trailed a common purpose of eliminating discrimination in mortgage loans. This is one of the moral issues Mortgage companies are facing (Yinger, 1998). Though, discrimination on Mortgage lending has become more subtle of recent, some of mortgage brokers push minority borrowers to elevated cost sub prime mortgages, which are not sound to their requirements, thereby leading to financial difficulty in the long run. In more than thirty years since the enactment of lending legislation, marginalized consumers continue to contain with unequal access to mortgage loans along with poor terms and higher prices (Yinger, J1998).
Moral and Ethical Issues
This Mortgage Company is facing the modification of fraud in the industry. It seems that fraudent conduct has flourished in recently as a result of an increase in mortgage loans in the industry as well as consequent spread of inexperienced consumerism. The frequency of mortgage scam throughout the last two years has been considerable high, spurring FBI to investigation action (Alexander, 2002). This Mortgage Company ought to be prepared in facing this fraud scam that is eroding the image of many mortgage companies in the United States. Hypothetical the mortgage fraud may perhaps engross a pushed overall false evaluation of $500,000 for a mortgage initially selling at $300,000 (Bradford, 2002). The agreement of offered at last would indicate a $200,000 suborn to a remodeling company, which may or may not be in existence, but has no intention of providing any remodeling services.
The mortgage company are getting major challenges is dealing with moral and ethical issues in a legal context, this company is not able to evict an individual in any property till that period when the mortgage company establishes the really resident of that particular property. This legal decision is taking effect to those mortgage companies operating in the state of Chicago (Yinger, 1998). This decision was made in response to allegation that some of the individuals being evicted are renters and property owners, according to this decision a renter who has fulfilled her/ his obligations must not be evicted (Courchane et al., 2004). Therefore this legal stipulation is not a ‘darling' of many mortgage companies, but from the moral point of view the decision or this legal stipulation is very correct in the sense that mortgage company have to properly recognize the inhabitants of the property and stop evicting individuals who have fulfilled their obligations as tenants because this action is morally unacceptable
Code of Ethics
Yes, this company encompasses a formal code of ethics, the topics included in this formal code of ethics are; the behavior and conduct of mortgage brokers, discriminations in the lending of loans where mortgage loansare supposed to lend to any one who has the ability to afford. The codes are distributed in each and every department of the company by use of office messenger. Other codes are printed and pinned to the notice board for each and every one to access. The code is reinforced in reward and decision making systems.
Training
The mortgage companies involve themselves in the aspects of workers supervision, which include oversight for proper background prove in employing workers, monitoring of the suitable workers, and putting in place programs for heightened supervision for workers problems. These companies are also involved in producing written conformity for their workers, help in generating code of ethics that would favor the working environment for the worker as well as implementing workers' training programs including refresher short course to improve on their service delivery and productivity both to the consumers and mortgage companies. The managers and employees of this mortgage company are introduced to the products and services of the company, the values and the code of ethics are strictly emphasized by the management to the employees. For instance, fraud and discrimination cases are well addressed by the management, emphasizing to the workers that any act that will violate the stipulations in the code of ethics will be received with a severe punishment.
Managers of this mortgage company are well trained in issues regarding their decisions and responsibilities when dealing with the customers or consumers. The managers of this company are also trained in to comply with the transaction policy that sets the company's framework for the endorsement of transactions involving individuals and entities related to it. Workers of this mortgage company are ethically trained to handle the consumers of the company in a human way, to properly identify their consumers in order to avoid any kind of mix up when it comes to issues of eviction of inhabitants who do not fulfill the obligations of the company.
Monitoring
The company has an established mechanism of monitoring the ethics, the integrity and ethics in this mortgage company are measured by the consumers satisfaction, in that the questionnaire are provided to the consumers to give their views about the services and products of the company. On the issue of integrity, consumers or mortgage owners are always protected by this company from fraudent broker who may come to exploit them. The company do this by ensuring that its system of mortgage lending is does not have any loopholes to ethical and integrity violation. Whistle blowers are highly encouraged by this company, as this act as a corrective and monitoring measure that is very reliable, at the same time very reliable. The company give incentives to any worker who earth break any issue of great importance, such as mortgage lending discrimination or fraudulent behavior of company's broker. The motivation given to employees after unearthing any important issue encourage them to act as whistle blows thereby spear heading transparency in the company. Yes there is language existence between the managers and employees of the company permitting the apparent discussion about the ethical situations of the company.
Enforcement
The managers of this mortgage company enforce the regulated company ethics by involving the consumers in the decision making of the company. The also make sure that the consumers do not mislay the fortification afforded through a truly impartial third party against prospective unethical acts. All employees of the company are obligated to adhere to the code of ethics stipulated by the mortgage company. No mortgage broker is supposed to get into behavior that the company term unlawful. Failure of any employee or an affiliate of this company to follow the regulation, will render him or her sever punishment, including termination of such an individual.
