Comments on: You Could Commit Loan Fraud Without Knowing It http://www.mortgagecreditproblems.com/blog/you-could-commit-loan-fraud-without-knowing-it/ Mortgage Credit Problems: Helping You Find a Home Loan with Bad Credit Wed, 07 Jan 2009 03:34:02 +0000 http://wordpress.org/?v=2.3.2 By: George http://www.mortgagecreditproblems.com/blog/you-could-commit-loan-fraud-without-knowing-it/#comment-439 George Tue, 26 Aug 2008 21:29:01 +0000 http://www.mortgagecreditproblems.com/blog/you-could-commit-loan-fraud-without-knowing-it/#comment-439 Wow, I guess we'll have to see how this all pans out. Wow, I guess we’ll have to see how this all pans out.

]]> By: Gina Pogol http://www.mortgagecreditproblems.com/blog/you-could-commit-loan-fraud-without-knowing-it/#comment-438 Gina Pogol Tue, 26 Aug 2008 21:20:03 +0000 http://www.mortgagecreditproblems.com/blog/you-could-commit-loan-fraud-without-knowing-it/#comment-438 Alan, you are probably right. CNN's theory is that with tightening guidelines and fewer buyers, lenders and Realtors are under a lot of pressure to perform and get deals done. Some are obviously cracking. George, supply and demand does play a part. Home sellers have been involved in a significant portion of fraud. In fact, the Detroit Free press claimed today that Pistons guard Lindsey Hunter may have been involved in a mortgage fraud. He put a "straw buyer" on his bank account, making it appear that the buyer had more assets than he did, and used the fake assets to get a $1.25 mil stated income loan approved. Of course, the buyer didn't have the income needed to make the payments and the home went into foreclosure. The buyer got $20,000, ruined credit, possible criminal charges, and a divorce for his role in the scheme. Hunter supposedly was paid by the seller--apparently the house sold for far more than it was worth and they split the profits. Alan, you are probably right. CNN’s theory is that with tightening guidelines and fewer buyers, lenders and Realtors are under a lot of pressure to perform and get deals done. Some are obviously cracking.

George, supply and demand does play a part. Home sellers have been involved in a significant portion of fraud. In fact, the Detroit Free press claimed today that Pistons guard Lindsey Hunter may have been involved in a mortgage fraud. He put a “straw buyer” on his bank account, making it appear that the buyer had more assets than he did, and used the fake assets to get a $1.25 mil stated income loan approved. Of course, the buyer didn’t have the income needed to make the payments and the home went into foreclosure. The buyer got $20,000, ruined credit, possible criminal charges, and a divorce for his role in the scheme. Hunter supposedly was paid by the seller–apparently the house sold for far more than it was worth and they split the profits.

]]> By: George http://www.mortgagecreditproblems.com/blog/you-could-commit-loan-fraud-without-knowing-it/#comment-437 George Tue, 26 Aug 2008 21:08:39 +0000 http://www.mortgagecreditproblems.com/blog/you-could-commit-loan-fraud-without-knowing-it/#comment-437 Great point Alan. That could be a cause, adding now the tax rebate for new home owners, but it wouldn't be right to become more lenient on underwriting either as that seems to be what lead us to this point. I guess it just really has to make sense for a lender to approve someone and the rest of us can be renters. I don't know how all of this will pan out considering supply and demand and all of the homes that were built, but remain empty. Any ideas? Great point Alan. That could be a cause, adding now the tax rebate for new home owners, but it wouldn’t be right to become more lenient on underwriting either as that seems to be what lead us to this point. I guess it just really has to make sense for a lender to approve someone and the rest of us can be renters. I don’t know how all of this will pan out considering supply and demand and all of the homes that were built, but remain empty. Any ideas?

]]> By: Alan http://www.mortgagecreditproblems.com/blog/you-could-commit-loan-fraud-without-knowing-it/#comment-436 Alan Tue, 26 Aug 2008 21:04:10 +0000 http://www.mortgagecreditproblems.com/blog/you-could-commit-loan-fraud-without-knowing-it/#comment-436 Do you think the increase in mortgage fraud is in part due to the crackdown on underwriting? Considering it is harder to qualify for a loan, it seems reasonable to assume more lenders and borrowers will attempt to make themselves appear more home worthy than it may seem (maybe not even on purpose). Do you think the increase in mortgage fraud is in part due to the crackdown on underwriting? Considering it is harder to qualify for a loan, it seems reasonable to assume more lenders and borrowers will attempt to make themselves appear more home worthy than it may seem (maybe not even on purpose).

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