The bank where we have our business credit made a home loan to my partner's wife. They receive annual tax returns from the business as well as the individual partners. The wife could barely make her prior mortgage and the bank gave her a new payment of six times the original payment amount. Now we find that she has been stealing from the company account. The bank had the documents to show that they did not make enough money to make the payment, and put her on a "no documentation required" loan. Could the bank be held resposible for the monetary theft for putting the company at risk?
We don't see the bank as having a liability because they didn't verify a person's income who allegedly stole from you. As to no documentation loans, these rules have changed for lenders, so we assume this was made well in the past.
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We don't see the bank as having a liability because they didn't verify a person's income who allegedly stole from you. As to no documentation loans, these rules have changed for lenders, so we assume this was made well in the past.