Exclusive | Morgan Stanley Bankers Were Pressured to Approve Mortgages for Wealthy Clients
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Peter Lynch- 0
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Inside Morgan Stanley’s MS private bank for the ultrawealthy over the past year, an employee in the mortgage-lending department tried to question how a client kept applying for new home loans claiming he would be living in the residences.
The client had already received several owner-occupied loans in just a few years and the banker was objecting to a new one, people familiar with the matter said. Those mortgages often come with lower interest rates and require smaller down payments for the borrower than second-homes or investment properties would, and seeking the wrong type of loan can be considered fraud.
“This is getting ridiculous,” the banker said.
His mortgage colleagues told him to drop his concerns, the people said. They didn’t want to deal with pushback from a financial adviser who managed the client’s wealth assets.
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