Fraud for profit: This type of fraud is typically committed by industry insiders, including bank officers, appraisers, mortgage bankers and more. These insiders use their industry knowledge to facilitate fraud by misusing the mortgage lending process to steal cash and equity from lenders or homeowners.
The Nationwide Mortgage Licensing System & Registry (NMLS) maintains a database of licensed brokers. Additionally, you can usually check if a broker is licensed or if there has been an order of disciplinary action against the broker by checking with your state regulator .
All mortgage brokers and loan officers attempt to convey the message, directly or indirectly, that they are trustworthy. Often it is true, but since most mortgage shoppers have no way of knowing whether it is or not, prudence dictates that they assume it to be a lie.
Mortgaging Your Good Name
Mortgage fraud through identity theft is a very real risk. A thief can steal your Social Security number and other identifying details, then pretend to be you to a bank or mortgage broker.
Red Flag #1: When they offer you a rate that's lower than the APR. When a mortgage's APR is much higher than the actual rate, it means that the fees are a lot higher, too - and you'll be paying them over the life of your loan. A low rate might be enticing, but you have to consider the long-term cost.
If you've been the victim of a loan scam or personal loan fraud, contact your local law enforcement as soon as possible. Notify, also, your state attorney general and the FBI (if the company was from another state or country). The Federal Trade Commission and Better Business Bureau also will be helpful allies.
Check out the company's address, phone number, and website to make sure they look legitimate. Be aware, though, that it's pretty easy for a company to get a fake address, phone number, and website. If you can, visit the company's physical address and talk to the people who work there.
The best way to identify a reputable company is to learn about others' experiences through online searches and by asking friends and family. Good lenders should have positive reviews from independent consumer advocacy websites or product comparison websites, along with strong user testimonials on social media websites.
Lying on a loan application may seem harmless at first — after all, a lender may not even check your inflated income claim or current employment status. However, intentionally lying on a personal loan application is considered fraud, and it can have real consequences.
Instead of offering a fair loan, these lenders use smooth-talking salespersons whose loans carry high-interest rates, outrageous fees, and unaffordable repayment terms. They can trick you into taking out loans that you cannot afford to repay.
Yes, a mortgage lender will look at any depository accounts on your bank statements — including checking accounts, savings accounts, and any open lines of credit.
Mortgage lenders require you to provide them with recent statements from any account with readily available funds, such as a checking or savings account. In fact, they'll likely ask for documentation for any and all accounts that hold monetary assets.
Generally speaking, it usually takes two to six weeks to get a mortgage approved. The application process can be accelerated by going through a mortgage broker who can find you the best deals that suit your circumstances. A mortgage offer is usually valid for 6 months.
Having a mortgage loan denied at closing is the worst and is much worse than a denial at the pre-approval stage. Although both denials hurt, each one requires a different game plan.
How far back do mortgage lenders look at bank statements? Generally, mortgage lenders require the last 60 days of bank statements. To learn more about the documentation required to apply for a home loan, contact a loan officer today.
Whether a potential borrower is buying a new home or refinancing, a broker gathers loan options from various lenders for the borrower to consider, while qualifying the borrower for a mortgage with those lenders at the same time.
While you should always be wary of sharing your information online, many online lenders are trustworthy companies that operate in a regulated industry. Unlike big banks, online lenders tend to specialize in a specific type of funding, such as personal loans, and work with customers that traditional banks may pass over.
Are loans from online lenders safe? Loans from online lenders are as safe as loans originated from large banks, provided that the online lender is reputable.
To find the best mortgage lender, you need to shop around. Consider different options like your bank, local credit union, online lenders and more. Ask about rates, loan terms, down payment requirements, mortgage insurance, closing cost and fees of all kinds, and compare these details on every offer.
Check EIN Status
Search for the company through its EIN at websites such as EIN Finder. If the company says it does not have an EIN, ask why. Also, search companies through their state tax numbers to determine if they are genuine.