Mortgage Fraud
Mortgage fraud is not only unethical, but also completely illegal.
Mortgage fraud entails claiming or submitting any information regarding a mortgage which is misleading or false.
As simple as that.
Mortgage Fraud Overview
Unfortunately, mortgage fraud isn’t a far reaching myth; it occurs a lot more commonly than you would think!
As a licensed mortgage broker it's my duty to have the utmost due diligence in fully analyzing mortgage files for signs of mortgage fraud before submitting the application to lenders.
An borrower may commit mortgage fraud by intentionally impersonating the rightful owner of a mortgage through use of fake identification. These mortgage schemes are highly criminal and not taken lightly.
Mortgage fraud may also occur in an attempt to get approved for a mortgage, create better terms/fixed rates/variable rates for the mortgage, or to extend a borrower's purchasing power.
“What’s a little fudging of numbers here and there? It doesn’t really hurt anyone does it?”
Wrong.
Depending on the type of misrepresentation, mortgage fraud has significant consequences for the victim involved, and for the lending industry at whole.
The Trickle Effect Of Mortgage Fraud
Submitting false documents may have you thinking that the only person who it negatively affects is yourself if you get caught. Unfortunately, the consequences of mortgage fraud are a lot further reaching than that.
Each case of mortgage fraud which skips under the radar acts to push deserving individuals out of the housing market who have ethically submitted their documents.
Does that sound fair?
A harmful consequence of mortgage fraud is the increased chance of default or foreclosure.
What Does Foreclosure Have To Do With Mortgage Fraud?
Lending regulations are in place to protect both the lender and the borrower.
Borrowers must meet certain criteria in order to be eligible for a mortgage; these requirements help ensure that the borrower is in a financially secure position to afford their mortgage, and won't be at a high risk of default or foreclosure.
Certain guidelines and regulations are now in place to mitigate the risk of foreclosure including:
- A required minimum down payment
- A great credit score
- An acceptable loan-to-value (LTV) ratio
- An acceptable debt-to-income (DTI) ratio
- proper inspection of mortgage documents by both licensed mortgage brokers and lenders
- A great credit score
Certain lenders, such as alternative B-lenders or private lenders may offer more lenient qualifications for a mortgage.
Mortgage Fraud Is A Big NO In My Books
As a licensed mortgage broker, I commit myself to ensuring that each mortgage application is submitted ethically and with integrity.
There are various mortgage programs available for self-employed borrowers and borrowers with bad credit. As an expert in the mortgage industry, I know how to navigate many application challenges.
There’s no need to submit any false or misleading information!
Whether you're in the market for purchasing as a first time home buyer, renewing, refinancing, or you'd like assistance consolidating debts (Home Equity Line of Credit [HELOC]), I'd be happy to help.
My policy is zero tolerance for mortgage fraud and I've helped countless borrowers get approved for fantastic mortgages by providing a mortgage service which is 100% ethical!
Detecting Mortgage Fraud
I've combed through hundreds of mortgage applications and because of this experience I've learnt how to spot mortgage fraud like a hawk hunting a mouse.
Potential red flags for mortgage fraud are:
- Income which doesn’t match the type of declared employment
- Discrepancies between declared addresses
- Assets/liabilities which don’t match the client’s age/income
- A matching phone number for the borrower/employer
- Blurry images, unclear documentation, documentation which appears to have been altered
- Discrepancies between declared addresses
A Mortgage Approval Without Committing Mortgage Fraud
Working alongside a licensed mortgage broker (such as myself!) means you have a professional working for your best interests.
When it comes to banks vs. brokers, licensed mortgage brokers have a fiduciary duty to put their clients interests FIRST.
I'm Kyle Benzies (licensed mortgage broker), and I have helped many clients (just like yourself!) secure a fantastic mortgage... without the need for mortgage fraud.
My knowledge of mortgage programs allows me to fit my clients with ethical mortgage solutions.
To learn about how we can secure a mortgage solution suited to your lifestyle and goals (without committing mortgage fraud), give me a no-risk call!
***other conditions may apply to anything listed above. The information provided on this page should NOT be implicitly relied upon, and may not be 100% up to date. It's best to contact us for the most current conditions/program offerings for first time buyers***