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Loan Fraud and the 4506-T

April 30th, 2008 · No Comments

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I just received an email from one of my lenders and they say that for all future loans they will require a Form 4506-T.

Why?

LOAN FRAUD.

Last month they funded a loan and upon verification of information (which they did after the loan closed) it was discovered that all the employment the borrower gave the lender was FICTITIOUS. Everything was fabricated by the borrower: the employer, the pay stubs, the W-2.

How people think they can get away with this kind of stuff is beyond me, but I suspect there are some who still do – and under former lax lending practices there were probably MANY who did (manage to get away with this kind of stuff).

Home Equity Lines of Credit - TROUBLE AHEAD?

January 18th, 2008 · No Comments

I have heard through the grapevine that the lenders will be placing freezes on HELOCs (Home Equity Lines of Credit) and this should come as no surprise since they were VERY liberal in the lines of credit that they offered. I would guess that they are seeing a fair number of defaults and upside down equity situations with HELOCs. So, if you have a HELOC don’t be surprised if your lender sends you a notice telling you that your limit has been reduced or frozen.

I think I mentioned this here awhile back, but a broker friend of mine from an office in an affluent North East part of town told me that many of the agents in her office are living off their HELOCs. Very Scary!

Oh - and just so you know folks - If you’re buying or selling in the Fresno / Clovis area - don’t hesitate to call me. I will do my level best not to disappoint!

Subprime Rate Five-Year Fix Agreed by U.S. Regulators

December 6th, 2007 · No Comments

Go HERE for the article.

What a mess we have gotten ourselves into. In the end, will the responsible people with good credit ratings, who make their mortgage payments on time every month, end up subsidizing the subprime borrowers who borrowed more than they should for houses they could not afford in the first place? IT’S CRAZY!

I believe that if they investigated these loans they would find so many instances of fraud by both lenders and borrowers that our prison system couldn’t hold them all!

We are seeing greed and financial irresponsibility at every level in this country. IT”S SCARY!!!

Fresno California Real Estate