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Report A Suspicious Mortgage Lender/Loan Processor
By Vic Hurlstorm | August 31, 2010
Mortgage loan fraud can be divided into many broad categories: Fraud for property and fraud for profit. Fraud for property is generally undertaken by borrowers against lenders, while fraud for profit is typically undertaken by lenders against borrowers. The collapse of America’s housing market and the subsequent “pulling back of the veil” behind dubious lending practices clearly showed that the lender-style of fraud, fraud for profit, is well-ahead of the borrower-style in frequency and complexity.
Fraud for property generally involves the deliberate misrepresentation or omission of information with the intent to deceive or mislead a lender into extending credit that would likely not be offered if the true facts were known. Although this has generally been used as a label for home buyers attempting to purchase homes for their personal use, the rise of sub-prime mortgage brokers and other financial intermediaries has greatly expanded this type of fraud; to the detriment of both buyers and lenders.
Fraud for profit is often committed with the complicity of industry insiders such as mortgage brokers, real estate agents, property appraisers, and settlement agents (attorneys and title examiners). A comprehensive, detailed list of fictitious activities undertaken by these actors can be found in our glossary of terms.
If you suspect fraudulent activity on the part of a lender, or any other financial intermediary, blow the whistle now! Go to the Making Home Affordable government website, maintained by the White House, the U.S. Treasury Department and the U.S. The federal governments Department of Housing and Urban Development. And always, always always, be on the look-out for the following scams:
- Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
- Con artists commonly mark homeowners who are attempting to meet their mortgage commitment or anxious to sell their homes. It is imperative that every homeowner learn to recognize and avoid scams.
- Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
- Do not sign over the deed to your property to any entity or individual unless you are working straight with your mortgage company to forgive your debt.
- Never make a mortgage payment to anyone other than your mortgage company without their approval.
Links:
3rd paragraph: glossary of terms –> /resources_glossary.php
4th paragraph: Making Home Affordable government website –> http://www.makinghomeaffordable.gov/beware.html
Topics: Mortgage Refinance | Comments Off
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