Are you a victim of Mortgage Fraud? Geneva Jones, a mortgage
specialist with over 20 years of mortgage and home loan lending experience
talks about mortgage fraud in her article below and on her new web site.
MORTGAGE FRAUD
Average
people…little white lies - sometimes it adds up to:
MORTGAGE FRAUD! What is fraud? The dictionary definition is 'intentional deception'. If mortgage fraud brings to mind gangs of 'loan sharks' and shady characters, think again. Mortgage fraud also involves average people and average loan officers who 'just changed the facts a little' to make sure that the loan went through.
It may surprise you to learn that mortgage fraud is any time that the facts that are in a file are not true. This includes information that is stated incorrectly or is not an accurate statement. This also includes information that is left out, that an underwriter or lender would need to fund, purchase or insure a loan or would change the price of the loan. Sometimes it is through ignorance or not knowing the laws. Sometimes it is not understanding why the information is important and to lenders.
Most loan officers are hard working people who are doing their best to help their customers get loans to purchase houses. They want to help people and they want to get paid. Most customers are good people who are trying to achieve the American dream of owning their own homes. Lenders are agreeing to lend large amounts of money that is needed for buying homes and real estate. They base their decisions to lend on the information that is on the loan application. They also ask for proof that the information that is correct by using paycheck stubs, tax information, bank statements and other documents.
I like to say that bankers and investors sleep with their calculators and they have every reason to! To buy a home in today's market, large amounts of money are needed. They rightly look over borrowers and their situations to make sure that they get a good return on their investment of lending money. From past experience, they have guidelines (underwriting criteria) which tell them what borrowers are the best risk and what borrowers have the same habits as those who have either made a habit of paying late or not paying at all.
After lending money and keeping track of thousands and thousands of loans, these investors have a pretty good idea of which borrowers will give them the best return on the money they lend for mortgage loans. If you are wondering why you must provide so many documents and information, consider how you would feel if you were to lend your own money - and then multiply it several thousand times and to a lot of people!
It is true that there are a small number of people who have chosen to take advantage of the system. They have created schemes to cheat both people and lenders out of thousands of dollars. In every business there are a few 'bad apples'. Most borrowers and average loan officers do not fit into this category. When you and your loan officer provide information that is accurate and give all of the details correctly, you are making it possible for lenders to give you the best loan for your situation. When they make a profit, that profit is passed on to other families and people who are looking to own a home just as you are.
FOR YOUR OWN PROTECTION and for the protection of lenders and investors:
- NEVER SIGN ANY DOCUMENT THAT YOU DO NOT UNDERSTAND
- Never sign any document that has spaces or lines that are blank. Either write in a dash ( ------) or write N/A (no answer)
- Be aware of loan terms or fees that change at closing or are not what your agreed to
- If you do not qualify for a loan, seek advice on how to improve your credit picture or your income. Most loan officers are happy to work with you on this.
- If it sounds too good to be true - it probably is.
- Seek the advice of an attorney. The few dollars that you spend for a professional opinion may save you thousands.
- Be as accurate as you can when you provide information.
- You will be signing documents that state your information is correct and true or you can face State and Federal authorities for fines and/or prison.
Sometimes the simplest guidelines are the best ones. Ask yourself as you sign each paper and provide each document: Is it the truth? Is it honest? Is it fair and in the good interest of all parties involved? Sometimes a little education and knowledge go a long way. If you as borrower and you as a loan officer don't know- finding out often saves everyone in the long run.
After working with many mortgage clients, It became more and more clear to me that most people were overwhelmed by the mortgage process. No one should be held hostage by what they don't know or easily taken advantage of because of what they don't know. With that in mind, my partner and I have created Personal Mortgage Guide.
- We would like to offer you an e-course on "The Seven Lies Of Omission That Your Lender May (or may not be telling you) That Could Cost You Thousands" as a gift to you.
- You'll also want to purchase and study Mortgage Mastery: Mastering Your Mortgage So That It Doesn't Master You.
Both are available at http://www.personalmortgageguide.com/
Because the wisest decision is the most informed one.
Geneva Jones
Geneva Jones.com
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Rich's Enterprises, Prattville Alabama
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