What is Mortgage Fraud?

2006MortgageFraudFBIWarningThere are numerous warnings to applicants in both the application process as well as closing documents alerting borrowers to the seriousness of committing mortgage fraud and the legal consequences. Yet in spite of all these warnings it has surprised me how many times lately that I have been approached by a borrower asking me to wink and nod at what is blatant fraud.

Most almost always the attempt to defraud either involved someone acting as a straw-buyer for an unknown third party or outright false statements regarding the borrowers intentions to occupy the subject property as either their primary residence or a second home when it was obviously an investment property.

In this day and age of enhanced scrutiny by lenders and with all the tools available to conduct their due diligence which can range from simple Google and facebook searches to industry specific tools such as CoreLogic, Equifax Verification Services and MERS, honesty should be a borrowers ONLY policy. Even if a borrowers situation is less than ideal, a good loan officer will coach and educate a borrower on how to help them to legally and ethically overcome those deficiencies to become qualified for the loan that will help them to meet their lifestyle goals.

Ricardo Cobos is a state licensed mortgage loan officer in North Carolina NMLS 120651. Each persons situation is unique and fact dependent. Please consult a licensed mortgage loan officer before making any mortgage decision.

This article was written by ricardocobos

Since relocating from Northern Michigan in 2007 I have lived in Garner (27529) with my wife Melanie and our four children. With personal production of 8MM in real estate sales across Southern Wake County I am considered to be a local market expert in the following communities: Garner (27529), Fuquay-Varina (27526), Holly-Springs (27540), Apex (27502), and Raleigh (27603, 27604, 27606, 27609, 27610)) which spans from downtown Raleigh to Willow Spring including Lake Wheeler. Call or email me, I’m here to help! Ricardo Cobos (919) 526-0183