Mortgage Fraud Red Flags, Protect your license!
RED FLAGS!
In 2008, HUD-OIG had 451 residential loan fraud investigations.
WHAT IS MORTGAGE FRAUD?
Any intentional misstatement or omission that the lender, borrower, or anyone else involved in the lending process may have relied upon.
Any intentional using or facilitating the use of any such misstatement in the lending process or receiving any funds from described violations.
Conspiring with another/others to commit the described violations.
Recording any document that contains a misstatement, misrepresentation, or omission.
ELEMENTS OF MORTGAGE FRAUD
A deliberate Lie, misstatement, misrepresentation, or omission.
PASS ALONG THE LIE , Knowingly use or help someone use a lie.
MAKING MONEY OFF THE LIE – Receive any proceeds “or any other funds” from a transaction that you know or suspected involved mortgage fraud.
FILING AT THE COURTHOUSE WHAT YOU KNOW TO BE TAINTED INSTRUMENTS – Documents you know contain a misstatement, misrepresentation, or an omission of fact.
MORE MORTGAGE FRAUD SCHEMES
Borrower does not intend to occupy the property even though Owner-Occupancy is required by the loan.
Falsification of the source of the down payment. Silent second mortgage or undisclosed “family” loan.
Straw Buyers
The Middle Men who take property through a Quit Claim Deed, or sometimes even a Warranty Deed they personally prepare with no title search.
Unusual fees appear on closing statements that are not in the Purchase and Sale Agreement.
WHAT CAN I DO?
If anything seems strange concerning the deal, the agent should not go forward with the listing or with the buyer without speaking with a broker. Notify your broker immediately!
If anything seems strange with the deal at the closing table, the agent should not accept the commission at closing. Do not accept the Pay-At-Close or the company check. Ask the attorney to hold it for the brokerage until questions are answered. Notify your broker immediately!
WHAT ARE THE POTENTIAL PENALTIES IF I PARTICIPATE?
Loss of Real Estate License
One to ten years imprisonment and/or a fine of up to $5,000 on the first offense.
If there is a pattern of fraud or conspiracy to defraud, the punishment is three to twenty years imprisonment and/or a fine of up to $100,000
BE CAREFUL!
RED FLAGS!
In 2008, HUD-OIG had 451 residential loan fraud investigations.
WHAT IS MORTGAGE FRAUD?
Any intentional misstatement or omission that the lender, borrower, or anyone else involved in the lending process may have relied upon.
Any intentional using or facilitating the use of any such misstatement in the lending process or receiving any funds from described violations.
Conspiring with another/others to commit the described violations.
Recording any document that contains a misstatement, misrepresentation, or omission.
ELEMENTS OF MORTGAGE FRAUD
A deliberate Lie, misstatement, misrepresentation, or omission.
PASS ALONG THE LIE , Knowingly use or help someone use a lie.
MAKING MONEY OFF THE LIE – Receive any proceeds “or any other funds” from a transaction that you know or suspected involved mortgage fraud.
FILING AT THE COURTHOUSE WHAT YOU KNOW TO BE TAINTED INSTRUMENTS – Documents you know contain a misstatement, misrepresentation, or an omission of fact.
MORE MORTGAGE FRAUD SCHEMES
Borrower does not intend to occupy the property even though Owner-Occupancy is required by the loan.
Falsification of the source of the down payment. Silent second mortgage or undisclosed “family” loan.
Straw Buyers
The Middle Men who take property through a Quit Claim Deed, or sometimes even a Warranty Deed they personally prepare with no title search.
Unusual fees appear on closing statements that are not in the Purchase and Sale Agreement.
WHAT CAN I DO?
If anything seems strange concerning the deal, the agent should not go forward with the listing or with the buyer without speaking with a broker. Notify your broker immediately!
If anything seems strange with the deal at the closing table, the agent should not accept the commission at closing. Do not accept the Pay-At-Close or the company check. Ask the attorney to hold it for the brokerage until questions are answered. Notify your broker immediately!
WHAT ARE THE POTENTIAL PENALTIES IF I PARTICIPATE?
Loss of Real Estate License
One to ten years imprisonment and/or a fine of up to $5,000 on the first offense.
If there is a pattern of fraud or conspiracy to defraud, the punishment is three to twenty years imprisonment and/or a fine of up to $100,000
BE CAREFUL!
N-Sourcer
posted by Solid Source Family First Realty at
10:07 AM
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