Mortgage Fraud
Posted by admin under: Main Oct 31
Mortgage fraud involves various practices of obtaining a mortgage through deception and false account. It can result in serious penalties; there are several cases of prison sentences involved.
Mortgage fraud in the UK can involve:
- Fraudulent income statements.
- false driving licenses and other documents
- inconsistent data.
Self certification and mortgage fraud
Mortgage fraud has become increasingly easier with the use of self-certification mortgages. Self certification mortgages enable self employed people to state their income with little proof. Increasingly many self-cert mortgage lenders don’t make rigorous checks about the applicants perceived income.
Some people are under the illusion that is OK to exaggerate income for a self certification mortgage. However, if you do misstate your income and have no way of verifying it, it can be counted as fraud.
Also, even if you are encouraged to inflate your income by a mortgage adviser, this doesn’t absolve you of blame as well.
Penalties for Mortgage Fraud
Penalties for mortgage fraud can be more severe for mortgage advisers. There have been cases where mortgage advisors have encouraged applicants to exaggerate their income in order to get a sufficient mortgage.
With the collapse in the US sub prime mortgage market the scrutiny of the mortgage industry is likely to become more intense.
As well as mortgage fraud the other dangers of exaggerating income is that it becomes very difficult to pay back a mortgage if you borrow 6 or 7 times your income.
- Mortgage Fraud in UK subprime markets
- FSA in drive to cut mortgage fraud
- Mortgage fraudsters jailed
- Mortgage fraud uncovered by money programme at BBC
Source: Mortgage Fraud
Wednesday, October 31st, 2007 at 3:08 pm and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.