So I was talking to one of my clients yesterday and he started to lament about how the industry as a whole has a lot of "theft" in regards to brokers submitting deals that are then blatantly taken from lenders.

I'm wondering why anyone would do this from a business model point of view. Wouldn't stealing submissions lead to a bad rep or at the very least, ensuring brokers no longer submit?

From what I was told, even though files are commonly taken, it doesn't really affect the lenders who do this. I'm trying to grasp the logic behind both the taking of files and the logic in the brokers who would continue to submit to them. I'm wondering if anyone could shed some light as I am highly curious. In my mind, it's analogous to giving money to an investment broker knowing he's not going to invest with you and take your money.....and then continuing to invest with him. it's not computing for me.