What evidence may be considered when an applicant has previously owned a mortgage company and faced legal issues with former employees?

When evaluating an applicant who has previously owned a mortgage company and encountered legal issues with former employees, the applicant's competence is essential evidence to consider. Competence refers to the individual's ability to effectively manage the operations of a mortgage company, adhere to legal requirements, and lead a team in a compliant manner. Given the context of past legal issues, assessing competence sheds light on the applicant's knowledge of industry regulations, managerial skills, and overall performance in their prior role.

These factors are critical, as they help determine whether the applicant has learned from past experiences, improved their practices, and can be trusted to operate within the legal and ethical boundaries of the lending industry in the future. Focusing on competence ensures that the evaluation process considers the applicant's ability to mitigate risks associated with legal disputes and to foster a healthy work environment.