Here we go again with loan originators and real estate agents causing more problems for our already strained mortgage industry. Some loan originators and real estate agents are helping borrowers purchase a new home, only to bail on their current home that is upside down on the value. When the loan application was completed, the borrower already new they would not be renting out their current home. They had been coached on how to purchase a home now while their credit was good, and then after the closing stop making payments on the old home.
This is fraud. The application misrepresented the borrower’s intentions. For those that were involved in this scam, Fannie Mae has stated they will be going after the lender, real estate agent, loan originator, and borrower in these foreclosures. Have you ever read the application and certification sections of the application? How is sticking the lender with another foreclosure going to allow our industry to get out of the ‘foreclosure crisis’?
What is your opinion of this issue?
Tags: Buy and Bail Scam, fannie mae, Mortgage Fraud, Mortgage scams
