Mortgage Fraud in the Headlines

2 Replies

Check it. Guys look like they are in a lot of trouble. Is there such a thing as too creative?

https://dailyvoice.com/new-york/nassau/news/trio-from-long-island-queens-nabbed-for-alleged-mortgage-fraud-scheme-feds-say/800832/

And more:

https://www.justice.gov/usao-edny/pr/united-states-files-civil-fraud-suit-against-three-individuals-and-multiple-real-estate

Originally posted by @Matthew Herrington :

Check it. Guys look like they are in a lot of trouble. Is there such a thing as too creative?

https://dailyvoice.com/new-yor... more:

https://www.justice.gov/usao-edny/pr/united-states-files-civil-fraud-suit-against-three-individuals-and-multiple-real-estate

 Too many people confuse criminal behavior for creative behavior. A thief who knows how to bump a lock could be considered creative by some. I see all the time in these forums, people discussing ways to get around owner occupied rules on mortgages. They are defrauding the federal government. Mortgage fraud is investigated by the FBI. I don't think people understand that it is illegal to even lie to the FBI. So if you get a call from the FBI and they ask if you occupied the property, you better answer truthful or take the fifth. If you like, you are now up on additional charges for lying to the FBI. Too many people dismiss mortgage fraud and pretend nobody is checking up on things. They definitely can't catch everyone, but when they do catch someone, they make and example out of them. The fraud discussed in this article is hardly anything I would consider "high level" criminal behavior, which just underscores my point that even crimes that look minor can be prosecuted.

Mortgage fraud and occupancy fraud is no joke. As a lender, we always have to be super careful. No lender wants to be involved with something like that. We are all licensed professionals and anything that jeopardizes our licenses is scary.