Mortgage brokers and loan officers are at great risk of prosecution due to originated stated income loan products. Even if they originated a prime stated loan there is a risk that they may face jail time or a large fine, frequently even both. Necessary precautions have to be taken to ensure that you are protected in case you are questioned by the FBI with regards to these loans.
The situations vary on a case to case basis. However, a common scenario is where borrower overstates his/her income. This is revealed when a stated loan goes into default. The process includes a team that checks the tax returns filed by the borrower to check whether or not the stated income was correct. In most cases, the income is overstated and the loan is fraudulent. According to research, over 90% of stated loans are issued to borrowers who overstated their income. Also, the income stated by the borrower was double the amount he/she actually earned in over 60% of these loans. If you are questioned by the FBI regarding stated income loans here is what you need to do:
- Contact your lawyer right away. If you don’t have a lawyer, find one who has experience in dealing with cases related to mortgage fraud.
- Only agree to an interview with the FBI if your attorney is present. Prior to the interview, discuss your options with your attorney.
- Never try to put the blame on the underwriter or account executive.
- Research and locate all documents related to the loan in question. Make sure you have complete knowledge of the transaction.
- Make sure you follow your lawyer’s guidelines carefully.
- Hire an expert witness who has profound knowledge regarding federal or state cases related to mortgage fraud.
- Consult your attorney before making any statements as they can be used against you as evidence.
This situation should be taken very seriously as it can affect you and your family’s future. If you have not been approached by the FBI, it is still best to be prepared and understand all your options.
These types of situations are going to continue for years as mortgage lenders try to obtain restitution for the foreclosures occurring under the stated loan products created by the industry. If you find yourself in need of help, please contact Mortgage Defense at 704-574-0364 now.