Morgan Stanley's (MS) mortgage bankers are allegedly being pressured to approve mortgages for wealthy clients despite underwriting concerns, The Wall Street Journal reported, quoting current and former employees, emails and internal documents.

Mortgage employees face pushback from their managers and financial advisers in charge of wealthy clients when they delay loan approvals or block them, the report said.

A Morgan Stanley spokesman told the Journal that its mortgage division "adheres to robust underwriting standards, supported by extensive internal risk management and regulatory oversight."

"There is no evidence that any loan was inappropriately extended, or that any loan failed to perform," the spokesman said. "The suggestion that the bank has compromised its underwriting standards is false and not substantiated by the facts or the performance of the portfolio over time."

Morgan Stanley didn't immediately respond to a request for comment by MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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