Monday, February 11, 2008

Mortgage Fraud Crimes

Mortgage fraud is a wide term used to define a assortment of actions that are done with the purpose of misrepresenting or omitting some of import information on an application with the aim of funding, purchasing or insuring a mortgage loan.

The term should never be confused with predatory mortgage lending. A fraud haps when an individual efforts to lead on a fiscal organization. Predatory loaning pattern is a term used to define the malicious patterns committed by a fiscal organisation with the aim of deceptive or deceiving a customer.

Here are a few examples:

Occupancy fraud: In general, loaners complaint higher involvement charge per unit on places that are not occupied by the proprietors and are purchased with the aim of an investment. In order to obtain mortgage loans at less involvement rates, borrowers seek to mislead the fiscal organisation claiming that they are the primary residents.

Employment/income fraud: With the aim of obtaining a higher loan amount, borrowers be given to exaggerate their income levels. Also referred to as prevaricator loans, these frauds happen when the income degrees of the borrower are not verified by the loaning agency. One illustration of a prevaricator loan is where the borrower alters the income statement word form issued by the employer. Another good illustration of this type of fraud is where an income claim is made in lawsuit of a self-employed individual where there will be no written document available to turn out the income claim made by the borrower.

Appraisal fraud: In this type of fraud, the borrower comes in an apprehension with the valuator and acquires the property's appraised value overstated. This fraud is committed by the borrower with the aim of obtaining higher loan amount in the word form of cash-out refinance. Appraisal frauds are also committed by Sellers with the aim of getting higher value during a purchase transaction.

Labels: , ,


Post a Comment

<< Home