Just when you think you’ve heard everything here comes some new mortgage scams—Welcome to the world of “asset rentals” now being investigated by bank and mortgage industry fraud experts.
On some mortgage transactions borrowers are qualified based on cash reserves and on proof of employment. Now there are companies who advertise they will “rent” you the reserves and “create” your employment.
It works like this: Say your loan officer discovers that you lack the financial wherewithal needed to qualify for the mortgage you want. Rather than lose your business, the loan officer turns to a service that offers’’ asset rentals.’’ For a flat fee of 5 percent of the amount you need, the service will verify to anyone who asks that the $100,000, $500,000 or $1 million in bank deposits you’ve claimed on your loan application documents are yours.
I don’t know about you, but for me I don’t think I would sleep well in the bedroom of a home that I purchased under fradulent circumstances.
Mortgage scams hurt lenders and their consequences reach out to hurt the public in general.
Questions or information regarding mortgage scams will be responded to promptly.
Source: Miami Herald (registration required)