Mortgage fraud occurs whenever a borrower, Mortgage Broker, Loan Officer or other involved party misrepresent any of the facts with respect to the application process. The point of misrepresenting information is to allow the borrower to illegally qualify for a home loan or, if a Mortgage Broke/Loan Officer, to earn a commission using fraudulent information. In many cases all parties to the transaction may not be aware of the other parties fraud. A borrower may have forged or provided inaccurate information or a Mortgage Broker/Loan Officer may manipulate the facts to gain an approval. Sometimes it all parties conspiring together.
Mortgage Brokers are required to be compliant in all their operations with respect to a vast amount of rules and regulations. As this body of law has rapidly expanded brokers often find themselves unable to keep track of all the latest federal and state regulations due to the complex nature of these rules and regulations or a lack of understanding as to their implementation Of course if a business keeps operating without considering these rules and regulations they may very well be putting the future of their business at stake, prosecuted for negligence or even fraud. Frequently they need someone to analyze their operations and devise a methodology to keep them completely compliant while being cost effective. This allows Mortgage Brokers to focus on their business and keep a viable income stream.
Mortgage attorneys often require outside assistance in mortgage fraud cases. They need someone to analyze the facts and figures and provide an expert opinion as to the questions that may exist. This expert opinion can be written or oral and is presented in federal or state court The fraud expert is aware or the many forms of fraud and can track these fraudulent transactions from origination through the secondary market. This information can become an invaluable tool in the defense of the client. The attorney presents the facts in court to help the defendant and those facts are supported by the expert.
Mortgage regulators are often scrutinized for their regulatory actions. Their investigation, and the related facts, or often under attack from the defendants attorney in a court of law. A mortgage fraud expert is able to lend credibility to factual items and as experts will often collect data from mortgage primary and secondary markets, loan officers and borrowers to provide a sound foundation for the regulator.
Mortgage fraud experts have a wealth of knowledge when it comes to industry standards, rules and regulations. They frequently can be the difference between success and failure.