Watch Your Step (Pen), Mortgage Fraud Is Easy To Commit
Posted by admin under: Main Dec 04Watch your step when boarding a train or when signing for a mortgage. Sign the wrong paper and it could be a ride to prison. Am I trying to scare you out of committing mortgage fraud? YES! Don’t sign any paperwork with false information on it.
In a recent public meeting the Washington State Department Of Financial Institutions disclosed they have turned several audit results over to the Prosecuting Attorney’s office. The astounding high number of the same incident should pose as an example of how easy and how serious it is to commit mortgage fraud.
The head of the broker audit team announced that 6% of the broker audits this year have discovered the same fraud incident. All have been turned over.
That incident is where the loan is a stated income loan and there are documents in the file showing the stated income to be fraudulent.
In other words, the borrowers started as a full documentation file. They supplied tax returns, W-2’s, and/or pay stubs. They likely ran up against a qualifying problem. Probably the loan officer said, no problem, we can go stated income. So the borrower signs paperwork claiming a higher income than is true. That people is fraud. It will be prosecuted as fraud.
Who committed the fraud? The loan officer? The borrower? The answer: who signed the paperwork? The loan officer. The borrower.
Again, don’t sign any paperwork with false information on it.
Source: Watch Your Step (Pen), Mortgage Fraud Is Easy To Commit
Tuesday, December 4th, 2007 at 9:51 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.