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Old 09-21-2018, 05:21 PM
 
18,236 posts, read 11,645,412 times
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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/
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Old 09-21-2018, 09:20 PM
 
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Oh no, the sky is falling.

Quote:
Berg noted, however, that although “fraud risk” as measured by her company’s research is on the rise and troubling, it still represents a small fraction of total loans being originated — just under 1 percent.
Before the last crash.

Quote:
Credit Suisse reported in early 2007 that 49 percent of new mortgage originations in 2006 were liar’s loans.
Quote:
In 2006, the mortgage industry’s own anti-fraud experts warned that liar’s loans had a fraud incidence of 90 percent
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Old 09-22-2018, 05:05 PM
 
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Probably one of the reasons while "growing" mortgage fraud remains rather low in terms of overall numbers is largely thanks to the intense and intrusive vetting process.


Applying for a mortgage today even for those with excellent credit and good financials is vastly different than before 2008.


Just as with credit cards and other forms of lending banks/financing companies work with computer driven credit models that are usually pretty good at spotting BS. That is what someone is putting down on application just doesn't jive with real world situations.
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Old 09-23-2018, 12:49 AM
 
16,476 posts, read 17,501,756 times
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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/
You have to prove income. So unless you’re going to falsify tax returns, bank statements, money accounts and pay stubs it’s gonna be caught. The liar loans are simply not going through.
Yo7 can lie on a application. The lie will be found and all you did was waste everyones time
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Old 09-23-2018, 04:53 AM
 
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even equity loans now take the same scrutiny
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Old 09-23-2018, 04:57 AM
 
Location: Pennsylvania
8,951 posts, read 3,114,068 times
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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/
Vandalay Industries.

https://www.youtube.com/watch?v=_T35QhLx_KI
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Old 09-23-2018, 05:26 AM
 
4,536 posts, read 9,860,859 times
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Not sure what lying does?

When I really got into the loan approval process I had to submit 4 weeks of latest pay stubs and the prior years W2. Kinda hard to lie on that.
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Old 09-23-2018, 06:40 AM
 
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they questioned everything on my daughters application . i had to sign forms that the wedding gift we gave them was not a loan because they wanted to know where that bank deposit came from when they saw it .
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Old 09-23-2018, 07:48 AM
 
Location: MD's Eastern Shore
2,250 posts, read 2,722,183 times
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I lent my parents money so I had some explaining to do about the large deposit several month's before purchase.
Since I have basically been self employed, I needed the past 2 years of tax transcripts from the IRS as well as W2's from the company I was doing some work with for 2 years. And both "jobs" had to be in the same line of work and it was a PIA proving that in my line of work I may be payed both ways.
I also needed bank statements going back a year or so!
Thank god for a mortgage broker who was familiar with my line of work.
Thank god I reported all tips I made.

I don't see how anybody can get by lying about income when buying a house!
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Old 09-23-2018, 09:17 AM
 
Location: Paranoid State
12,671 posts, read 9,420,097 times
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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.
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.
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