Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
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.
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
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.
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.
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
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.
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 .
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!
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.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
