![]() ![]() Those involved in fraud for profit, on the other hand, are interested in money. For instance, the borrower may embellish their income, assets or employment history to qualify for a mortgage. This type of fraud usually involves the help of a mortgage broker or loan officer providing exaggerated or false information to the lender. The FBI defines fraud for housing as illegal actions perpetrated by a borrower to acquire and maintain ownership of a property under false pretenses. The FBI places mortgage fraud in two categories: fraud for housing and fraud for profit. Lenders can also commit fraud when unscrupulous companies prey on unsuspecting consumers or employees conspire with outside parties to fleece their employer. ![]() Why Commit Mortgage Fraud?īorrowers commit mortgage fraud to con lenders and secure loans that they otherwise would not get-and potentially get a cash windfall from selling the property. The FBI noted that the number of mortgage fraud investigations rose from 881 in 2006 to more than 2,000 in 2009. The 2008 housing crisis-besides exposing banks’ lax underwriting standards-also brought rampant mortgage fraud to light. The FBI characterizes mortgage fraud as schemes perpetrated by “individuals acting alone or in collusion with borrowers, loan originators or real estate professionals.” The schemes typically involve an untrue statement or omission of key information in your mortgage application-for example, inflating the size of your income to secure a better interest rate, or lying about the property value to qualify for a larger loan under more favorable terms. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |