We have conducted hundreds of Mortgage Fraud investigations throughout NY and NJ for our insurance company clients. The following is the story of how one case of fraud was perpetrated, and ultimately, discovered.
We located the suspect and conducted a telephone interview. The subject informed us that he posed as the buyer for the property and provided his name, date of birth, and social security number for his friend so the friend could purchase a $400,000 home.
The friend had bad credit and could not get a mortgage. Our subject completed a URLA (Loan application) and listed his income, assets and liabilities. He signed the application and then went to the closing and signed all the closing documents.
The term for this type of Mortgage Fraud is “Straw Borrower” where the borrower on the application is not actually the buyer of the property.
Impact of Mortgage Fraud
Most committing fraud of this type think there isn’t a negative impact simply because they have all intentions of living in the home, as well as paying back the loan in a timely fashion. However, the waters become murky when you find there are lenders and brokers who are not verifying information on the application properly, or are editing the information without the borrower’s consent or knowledge.
Fraud for profit by overstating income, or otherwise falsifying the loan application, is a federal offense with a long statute of limitations and possible prison time for those who commit this type of mortgage fraud. Often there are several parties involved who come together to purchase property for the profit possibilities only, never intending to actually use the property as a residence or a business.
Other types of Mortgage Fraud include:
- Equity Skimming
- Foreclosure Rescue Schemes
- Air Loans
- Property Flipping
- Double Dipping
Mortgage Fraud is one of several different types of fraud investigated by the Management Resources team. We are experienced in all types of corporate fraud investigations .
According to the Association of Certified Fraud Examiners, American companies lose $660 billion dollars to internal fraud every year. A single incident of internal fraud costs the victimized company approximately $200,000. Companies with fraud awareness strategies in place reduce that loss by 50 percent or more.
Fraud and employee theft are one of the areas of crime which essentially affects us all as losses are passed on to consumers in the long run. If you feel you need to take a closer look into your corporate or personal assets, please contact us for an appointment.
Management Resources Ltd of New York is a professional investigative firm licensed in New York and New Jersey. . Management Resources is a member of the New York State Association of Criminal Defense Lawyers, Associated Licensed Detectives of New York, and Founding Members and Regional Directors of Investigating Innocence, and are available for interviews or speaking engagements. Contact ImaginePublicity at 843-808-08509 or email firstname.lastname@example.org