Mortgage fraud in Florida

Feb 22, 2007

Mortgage fraud in Florida

Mortgage fraud in Florida

We see it more and more in this market. Unscrupulous individuals trying to take advantage of the sellers desire to sell and a buyers inexperience with mortgage financing in order for an individual or individuals to illegally profit from the transaction.

The excuses we most often hear from buyers, real estate agents and mortgage brokers who are involved in these questionable deals is, "we do this all the time"?

I am here to tell you, you can put a dress on it, paint it purple and get it's nails done but at the end of the day, a pig is still a pig.

Here is a list of what the FBI considers warning signs to mortgage fraud:

Inflated Appraisals
Exclusive use of one appraiser
Increased Commissions and/or Bonuses by Brokers and Appraisers
Bonuses might paid (outside or at settlement) for fee-based services
Broker or appraiser might receive higher than customary fees
Falsifications on Loan Applications
Buyers instructed how to falsify the mortgage application
Buyers requested to sign blank application
Fake Supporting Loan Documentation
Buyer requested to sign blank employee or bank forms
Buyer requested to sign other types of blank forms
Purchase Loans Disguised as Refinance
Purchase loans that are disguised as refinances typically require less
documentation or might be scrutinized less by the lender
Short Term Investments with Guaranteed Re-Purchase
Investors might be used to flip property prices for a fixed percentage
Multiple "Holding Companies" might be utilized to increase
property values.