If a broker (Mickey Mouse) for a mortgage company (Daffy Duck Loan Company) grants a loan to an individual (Bugs Bunny) based on a note signed by a person (Bozo) who acted on Bugs' Bunny's behalf thru a forged document granting Bozo power of attorney, and Mickey Mouse knew that this was a forged document, is the Daffy Duck Loan Company responsible for such an action? In this case, Bugs Bunny already had a legitimate loan with the Daffy Duck Loan Company, but had no clue that this 2nd loan was being taken out in his name.
Maybe, but probably not. If the broker is the agent or employee of the loan company, then yes. If the broker processes loans on his own hook and then sells the packaged loan to the lender, then no, unless the lender knew that the document was forged. If the document is in fact forged, you have no liability for the loan. Scream fraud and call the police.
In this example, yes, the broker is an employee of the loan company. Could the person whose name was forged take legal action against this loan company as well as the employee? Could the loan company be held criminally liable for the acts of one of its employees? Thanks for any answers.
I had to show my drivers license to the mortgage loan officer, AND THEY MADE A COPY OF IT AND IT WENT TO UNDERWRITING...or who-ever gives final approval... If it FRAUD...then you better YELL FRAUD!!!
