The finger pointing continues
In the United States, Lehman is suing at least six mortgage lenders and brokers, claiming they sold Lehman dubious loans. Lehman claims that borrowers' incomes were overstated, appraisals were inflated and the homes were in poor condition. In most cases, the lenders are fighting the allegations and Lehman's demand that they buy back defaulted or otherwise problematic loans…….. PMI is trying to force the companies to buy back or replace loans the firm was hired to insure, which it says were made fraudulently or in violation of the standards the lender said it was using. Read more here
This is the part that astounds me, loans were made that did not require verification of income, “stated income” – the borrower “states” their income on the loan application. Typically these loans were at a higher interest rate than a loan which the borrower allowed their income to be verified. So, if the “stated income” was not a lie, why pay a premium for the loan? Was it not obvious that most of the income was typically overstated?
Posted by Phyllis Harb at 2/15/2008 9:34 AM 
Categories: All about Money, Foreclosures, Lenders, Loan Fraud
Categories: All about Money, Foreclosures, Lenders, Loan Fraud
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4/4/2008 5:33 PM
Los Angeles Real Estate Blog wrote:
Reports of mortgage fraud rise 42% in 2007According to the Financial Crimes Enforcement Network, the most common type of mortgage fraud was misrepresentation of income or assets, followed by forged documents, misrepresentation of a borrowers' intent to occupy a property as a primary residence, occupancy fraud and inflated appraisals, the government said in an analysis of the report. “The most common type of mortgage fraud was misrepresentation of income or assets” Who are they kidding??? “Stated income loans” invited these lies – how in the world can it now be considered mortgage fraud? There is so much ... -
4/5/2008 7:29 AM
Los Angeles Real Estate Blog wrote:
Reports of mortgage fraud rise 42% in 2007According to the Financial Crimes Enforcement Network, the most common type of mortgage fraud was misrepresentation of income or assets, followed by forged documents, misrepresentation of a borrowers' intent to occupy a property as a primary residence, occupancy fraud and inflated appraisals, the government said in an analysis of the report. “The most common type of mortgage fraud was misrepresentation of income or assets” Who are they kidding??? “Stated income loans” invited these lies – how in the world can it now be considered mortgage fraud? There is so much ...
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