MORTGAGE FRAUD INCREASES FHA TO VERIFY PRIMARY HOME BUYER LIVES AT PROPERTY
The real estate industry continues to develop changes on a weekly basis. It seems that mortgage fraud is on the rise. One would think with all the new laws that mortgage fraud would increase. People always try to get away with things until they get caught. I would everyone to do it right the first time. I turn down deals when the person wants to purchase a home under FHA. Then, that person wants to rent out the house. That is considered FRAUD. i politely turn down that business. I do not want to encourage that type of business practice.
So, I was reading an interesting article how FHA is experiencing an increase with mortgage fraud. They have caught several people purchase a home under the pretense of being the primary home buyer. This person closes on the deal. Then, FHA inspector knocks on the door to find out a different person lives at the house. This is considered fraud. So, the article continues to hint that the may require banks to hire third party companies to verify that the person doing the FHA loan will be the person living in that home. Wow, we can see a whole new industry develop like we have witnessed with BPOs.
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Harry, good for you. I have turned down business in the past for this very reason. I refuse to write a purchase contract as owner-occupied, FHA loan, when I learn the buyers do not plan on living there. Buyers need to beware that lying like that is mortgage fraud, and an agent, who doesn't point that out, or goes along with it, is not looking out for their clients' best interests.
Then, they ask the buyer was was your agent-They freely blame the agent
Harry, there is always people out there to take advantage. We should report them as it hurts others.
Nice article Harry that highlights a CONTINUING problem in mortgage financing. A third party verification company should be something you should pursue. Thanks for sharing.
Start the business