15 red flags that indicate possible Mortgage Fraud

Category: General

Posted on in General

15 red flags that indicate possible Mortgage Fraud

While the presence of one or more of these red flags doesn’t automatically mean that there might be mortgage fraud, further investigation is warranted. Several in the list are ‘common-sense’ warning signs. However, the slack lending standards that many banks and mortgage lenders employed the past several years, require the rest of us to promote and reiterate the red flags so that our industry can regain the public’s trust. Inconsistent ownership among supporting loan paperwork Payoffs from seller’s funds on HUD-1 being made to non-lienholders Not enough funds to close documented More than five mortgage inquiries listed on the credit report in the last 90 days Unusually high income for job description Bank statement deposits don’t match payroll dates Seller is a corporation Inconsistent information on the mortgage application (1003, sales contract, HUD-1) Change in ownership in the last 12 months Crossed out information on the loan documentation Inability to independently verify place of employment Borrower is a renter and is […]

by jberman
Posted on in General

New feature for our website!

The J. Berman Group is excited to announce a new feature in the right sidebar. Mortgage, Real Estate, & Technology News straight from our reader to yours. If you enjoy what you are reading and use twitter, follow us at ‘jbermangroup’ or you can subscribe to this site with the RSS button located in your address bar.

by jberman
Posted on in General

Wednesday Linkfest

Denver home prices show decline – Despite the negative headline, the numbers show Denver is holding up better than some metropolitan areas. Denver didn’t participate in the rapid price inflation the past few years. This seems to be supporting a slower erosion in prices in this soft market. Colorado House kills credit-scoring bill – Last year I testified before the state House on pending mortgage legislation. Representative Bucher held a firm bias against small business men and women. It seemed to me that there was a lack of understanding about the realities of our current credit environment and disturbingly an unwillingness to listen. This tidbit in the DBJ reveals the depth of Rep. Butcher’s understanding around issues of credit. House Bill 1143 was sponsored by Rep. Dorothy Butcher, D-Pueblo, who said the practice of “credit scoring” is unfair because there’s no correlation between credit and risks. As I see it, credit and risk are absolutely correlated. This is why an […]

by jberman
Posted on in General

Hello World

Well we are finally going to begin showing off our digital selves. Look to these pages in the near future to hear the latest on The J. Berman Group. We are moving into some exciting new areas of mortgage consultation. In addition, the team is undergoing a systematic and structural revamping. The concept is simple: to deliver an excellent financing experience. Our experience, integrity, & knowledge guarantee our customers a simple, well-thought out plan of action that will be financially responsible and in line with their financial goals and expectations. Stay tuned for exciting changes in this space. It’s right around the corner. JB

by jberman
BACK TO TOP