A New Twist on Owner Occupancy Fraud

Posted To: MND NewsWire

We often hear that there is no such thing as a perfect crime. Perhaps that is why there is always a fraudster trying to improve them. CoreLogic says the newest wrinkle in mortgage fraud is a reverse approach to the old misrepresenting occupancy scam. Traditionally it has been prospective investors who have claimed they intend owner occupancy . By posing as a resident owner they might qualify for a better interest rate, lower fees, a smaller downpayment or higher loan amount than they would by applying for a mortgage as an investor. CoreLogic analyst Willa Wei says there is a rising incidence of home buyers doing the exact opposite - claiming they will be renting out their purchase while actually intending to occupy. This allows them to claim "expected" rental income to satisfy the mortgage...(read more)

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