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Old 09-24-2018, 12:15 PM
 
16,492 posts, read 17,513,441 times
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Quote:
Originally Posted by BugsyPal View Post
Read article; apparently these people found places that generate all sorts of paperwork (income statements, work history, verify employment, etc.....) required for mortgages, and one assumes other sorts of credit. They would even answer telephones with name of company and so forth to make things look legit.
I know a guy who was a real estate agent. He did those exact things back in the day. You needed docs of any kind he got them. He went to jail and has a felony record today because of it. I spoke to him at length. He said everyone was doing it. He just happe to get caught. Iím not saying itís impossible to put fraudulent paperwork through. But it would need to be pretty organized for it to happen. Can it happen today? Sure. If someone wants to defraud someone itís possible. But to do it on such large scale where it brings down a housing market. ...... I donít see it


Quote:
Originally Posted by loves2read View Post
I think it is actually more than just "wasting everyone's time"
I think it is a violation of a federal law, isn't it???
Itís mortgage fraud to say the least.
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Old 09-24-2018, 02:42 PM
 
48,897 posts, read 39,392,211 times
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Quote:
Originally Posted by Electrician4you View Post
But to do it on such large scale where it brings down a housing market. ...... I donít see it
Yeah, that's not what brought down the housing market.

There was a certain level of fraud but at the same time there was this huge bubble being pushed by normal people as well as speculators of course.

When the bubble started popping, it hurt the high-growth areas the worst which then incented even more walk-aways....which caused even further falls...and then companies started layoffs which mean people couldn't make payments etc. etc.

It's just a popular excuse to JUST blame the banks for the crisis.

Also please note that there were bi-partisan political actions in the early 2000's to make housing more accessible to "all people" which meant loosening up lending standards for those with lower credit etc.

So many contributing factors to that colossal problem.
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Old 09-24-2018, 03:26 PM
 
18,258 posts, read 11,653,926 times
Reputation: 11865
Quote:
Originally Posted by Electrician4you View Post
I know a guy who was a real estate agent. He did those exact things back in the day. You needed docs of any kind he got them. He went to jail and has a felony record today because of it. I spoke to him at length. He said everyone was doing it. He just happe to get caught. Iím not saying itís impossible to put fraudulent paperwork through. But it would need to be pretty organized for it to happen. Can it happen today? Sure. If someone wants to defraud someone itís possible. But to do it on such large scale where it brings down a housing market. ...... I donít see it



Itís mortgage fraud to say the least.

Don't think point OP linked article was trying to make, nor oneself for that matter, is that mortgage fraud is so vastly widespread it poses a serious systemic issue.


No, just that fraud is happening and becoming a "growing" problem that lenders are getting their heads/hands around.


Getting the word out that such entities are aware and taking precautions should help those *considering* such actions to think again.


As with the guy you knew, there are serious consequences and reprocussions for lying on mortgage applications.
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Old 09-24-2018, 04:04 PM
 
2,360 posts, read 1,027,668 times
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Quote:
Originally Posted by Mathguy View Post
Yeah, that's not what brought down the housing market.

There was a certain level of fraud but at the same time there was this huge bubble being pushed by normal people as well as speculators of course.

When the bubble started popping, it hurt the high-growth areas the worst which then incented even more walk-aways....which caused even further falls...and then companies started layoffs which mean people couldn't make payments etc. etc.

It's just a popular excuse to JUST blame the banks for the crisis.

Also please note that there were bi-partisan political actions in the early 2000's to make housing more accessible to "all people" which meant loosening up lending standards for those with lower credit etc.

So many contributing factors to that colossal problem.

Nope still hard.. I dont have bad, nor best.. but in the middle and I have met the min score requirement and beat it by 5 points but seems that isnt enough. Income to debt is 30% at the moment and i guess they want it lower before i even get the paperwork started. Still lot harder for the average working family to even get a phone call back with news they are approved, much less get a appointment with a realtor.
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Old 09-24-2018, 04:19 PM
 
16,492 posts, read 17,513,441 times
Reputation: 23546
Quote:
Originally Posted by BugsyPal View Post
Don't think point OP linked article was trying to make, nor oneself for that matter, is that mortgage fraud is so vastly widespread it poses a serious systemic issue.


No, just that fraud is happening and becoming a "growing" problem that lenders are getting their heads/hands around.


Getting the word out that such entities are aware and taking precautions should help those *considering* such actions to think again.


As with the guy you knew, there are serious consequences and reprocussions for lying on mortgage applications.
Fraud happens everywhere in every type of business.
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Old 09-24-2018, 04:41 PM
 
1,461 posts, read 331,260 times
Reputation: 1667
Quote:
Originally Posted by SportyandMisty View Post
Wait. Ordinary people lying? I'm shocked. SHOCKED, I tell you.

"The check's in the mail."
"This will only hurt a little."
"I make $400,000 per year."


Well, there's a different ending, but, well, you know.
"It's only a cold sore"
"Nothing, officer"
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Old 09-24-2018, 04:47 PM
 
1,461 posts, read 331,260 times
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Applied for a USDA-Guaranteed (not direct) loan in late 2013, then the government shut down, and it took 4 months to close. Didn't stop my bank from asking for bank statements every freaking 2 weeks until they heard back from USDA though!
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Old 09-25-2018, 09:47 AM
 
195 posts, read 37,664 times
Reputation: 285
Quote:
Originally Posted by BugsyPal View Post
But it isn't the usual suspects; rather plenty of ordinary people are inflating incomes and or otherwise outright lying on mortgage applications about their finances and or employment.


https://therealdeal.com/2018/09/21/m...-to-buy-homes/
This all verifiable but the lenders are trying to, as usual, take shortcuts to increase their profits. They prefer be be reactionary, since there are no rules holding them accountable, instead of proactive. This lets them get deep into their profits before anyone notices anything. Remember make make huge amounts of money up front on loans.
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Old 09-25-2018, 11:58 AM
 
2,768 posts, read 1,496,259 times
Reputation: 2172
Quote:
Originally Posted by hitpausebutton2 View Post
Nope still hard.. I dont have bad, nor best.. but in the middle and I have met the min score requirement and beat it by 5 points but seems that isnt enough. Income to debt is 30% at the moment and i guess they want it lower before i even get the paperwork started. Still lot harder for the average working family to even get a phone call back with news they are approved, much less get a appointment with a realtor.

This sounds a lot like the other rambling posts you are known for producing @ C-D.
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