Aug
31
what makes lenders report suspected mortgage fraud?
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3 Comments
December 28th, 2009 at 6:13 pm
When they are auditing files or being audited, if something does not make sense or something was overlooked, they will look into fraud.
December 31st, 2009 at 8:13 am
When you lie on your application and when the lender cannot verify all the information on your application as true.
When you falsify documents to make it look like you’re making more money than you actually are.
When you get your friends to lie for you to get a loan.
These reasons and more are all mortgage fraud.
January 1st, 2010 at 8:41 am
The answer is simple,
if they suspect mortagge fraud they will investigate it.
Mortgage loans are underwritten prior to being aqpproved. The underwriter’s job is to make sure that the information that has been provided is passes the “smell test” . They are paid to be suspicious. Loans are audited after approval and sometimes other information is re-verified. The most obvious one is “do you intend to occupy as your primary residence”. Many people try to claim investment properties as their primary residnece as it is a lower rate. That is one that is often caught after the fact.
Alan