Borrower Beware

Many borrowers fudge a little when applying for a loan. The truth is, any lying on a real estate loan application is mortgage fraud.

Speaking about mortgage fraud, U.S. Attorney General Eric Holder said “these crimes have devastated and driven away many who were once willing to invest in our economy. They’ve robbed people of their homes and their economic security. They’ve depleted bank accounts and pension funds. In some places, they’ve dried up philanthropic giving and shuttered charities. They’ve placed unfair challenges before cash-strapped governments, local police departments, small businesses, and American workers and consumers.”

Given the steep rise in foreclosures and bank failures from bad loans, and the resulting economic decline, licensees should know now that even “little white lies” constitute mortgage fraud.

This article came from the January 2010-Vol40-3 edition of the bulletin.