Scary New Trend: Lying About Income on a Mortgage Application

Real Estate News Article

< Back

Scary New Trend: Lying About Income on a Mortgage Application

Written By: Jaymi Naciri
Monday, October 15, 2018

With high home prices and rents, rising mortgage rates, and heavy competition for available properties, potential buyers are feeling more pressure to own a place than ever. ldquo;As a result, an increasing number of buyers are lying and cheating,rdquo; they said. Co>

The property data and analysis company found that fraud >

Theyrsquo;re accomplishing this through Internet sites that help borrowers fudge their income and even provide a confirmation service on cross-check. ldquo;A casual search will result in any number of online services that will not only generate fake pay stubs, but will also answer phone calls and lsquo;confirmrsquo; income verbally, all for a fee,rdquo; said CNBC. Another scam involves borrowers who claim to have received an interest-free down payment gift from a >

The Washington Post also noted that, ldquo;Fannie Mae recently warned lenders via several alerts about a loan-fraud technique in which applicants claim to work for specific companies and provide income and employment information that appears to be bulletproof but turns out to be totally bogus. Applicants frequently claim to have been students immediately before their current employment. This makes it difficult or impossible for lenders to pull tax transcripts from the Internal Revenue Service for the year spent as a lsquo;student.rsquo;rdquo;

The risk is high all around

Borrowers may think of padding their income as a harmless white lie that has little downside if theyrsquo;re able to meet their goal of buying a home, however mortgage fraud carries with it some serious risks. ldquo;What are the possible consequences? Getting turned down for the mortgage is the least of them,rdquo; said Credit.com. ldquo;If your falsehood is discovered after you get the loan, your lender could boost your interest rate or even demand immediate repayment in full. Tax->

And then therersquo;s the risk to the housing industry if this current fraud trend is at all responsible for causing another crash; Co>



Copyright© 2018 Realty Times®. All Rights Reserved

Updated: Monday, December 17, 2018

7 Tricks Hotels Use That Can M...
"Whether you actually travel the world by getting on those planes, trains and automobiles or...

7 Simple amp; Smart Basement R...
But, if your basement is unfinished or has other lingering issues, it can be a downright sca...

Why Do Lenders Sell Loans?...
When you first work with your loan officer very early on in the process, yoursquo;ll soon es...

Copyright ©2018Realty Times®. All Rights Reserved

Housing Rebound: Factors to Consider
In Miami we have had an incredible year of growth with an ever shrinking supply of condos...

Hoteliers Buy Versace Mansion at Auction
Gindi Family and Nakash Family of New York were the winners of the auction for Casa Casuarina...

Stunning Estate for Sale on Allison Island
Allison Island is one of the man made islands comprising Miami Beach. One half of the island...

Avant Garde and Luxurious Penthouse on Fisher Island
Fisher Island is home to some of the highest net worth individuals in Miami. It is a private...

6000 Indian Creek, Condominium Spotlight
6000 Indian Creek is a Sieger Suarez project that was completed in 2007 and consists of...

$35 Million Buys you THIS on Star Island
$35 Million for a home on Star Island is par for the course in Miami Beach real estate....

Development Update
It is looking like a dusty winter season in Miami, with all the construction rapidly underway,...

North Bay Road Charm, 4330 North Bay Road
4330 North Bay Road is a stunning example of Mediterranean architecture in Miami Beach....

Best Home Improvements for Resale Value
It could not be a better time for a homeowner to list their home for sale in Miami. The...

Biscayne Gets a New Development
The Melo Group of developers acquired 601 NE 23rd St last year and have conceived of 23...

520 West Ave Residence 2301
520 West Avenue is home of the Bentley Bay. Bentley Bay is comprised of two modern towers...

Spice 2013, Guide 101
Miami Spice is a program whereby most of the restaurants in the city encourage people to...

Hollywood has a New Hotel
Margaritaville Hollywood is coming to Hollywood Beach and is likely to completely alter...

Sustainable Waterfront Home on Normandy Isle, 1.85 Million
Rarely on the market do we find completely sustainable, off the grid, homes in Miami Beach....

Housing Inventory on the Rise at the Close of Summer
The Wallstreet Journal released numbers via Realtor.com regarding the inventory of available...

Warm Spanish Style Home Listed on the Sunset Islands
1844 W. 23rd Street is listed on the Miami Beach luxury real estate marketplace for $11...

Former Gansevoort Getting Complete Eco-Renovation
Last year the Perry Hotel, formerly the Gansevoort, was purchased for $230 million. The...

Affordable Luxury Waterfront on Hibiscus Island
A home that is considered affordable in Miami terms for waterfront is generally between...

Bart Reines New Masterpiece Released on the Market
Bart Reines is one of the worlds most impressive modern architects living, and he has just...

New Listing on La Gorce Island
98 La Gorce Court has just been listed for sale. This over 7800 square foot home with 8...