The FBI, and the US attorney general have been on a mission since 2005 to arrest, and convict any person involved in committing fraud by deception when it comes to home loans. Even though a homebuyer has nothing to do with the scheme that many mortgage brokers are a part of, they can lose their homes all the same. There might even be some jail time involved until it can be proven that the consumer had nothing to do with the crime in the first place. It is unfortunate that this happens to unsuspecting people looking to buy their next or even first home, but greed is the deciding factor when it comes to any white-collar crime.
What happens in most cases, a married couple or even an individual will come into a lending institution to get approval for a home loan. The agent or broker will run their credit checks, and look at everything pertaining to their income, and backgrounds. They already know that these prospective applicants cannot be approved for a loan, but instead of telling them no, they falsify the records that they submit on the application to the host loan grantor to ensure approval.
Everything seems fine for a while, and the homeowners are happy to have received the loan, and have settled into to their new lives of home ownership. Then one day an FBI agent shows up at their front door and delivers the news about the loan being illegal due to the falsified information that was listed on the application. Usually these investigations are launched when a certain loan brokerage in the Houston area are having too many defaults under their name.
This causes an immediate foreclosure on the home, and the buyers are not only out of a place to live, they have lost their down payment, and all the closing fees that go along with the purchase. This happens more than some might think, and as home sales dwindle across America, these loan agents are becoming desperate to maintain certain levels of income from their commission on deals that they close. This is a very hard crime to prevent in the first place, as it is done without the applicants seeing the flawed information, and there is no way they can verify that the real documents were sent.
The outright defiling of the great American dream is happening all too often and is financially destroying families left and right. One way of verifying that the company cutting the check for you loan has the right information, is to contact them directly once approval is received, and ask for a copy of the application to verify it’s correctness.