Sociology 3357F/G Lecture Notes - Lecture 7: Mortgage Fraud, Reverse Mortgage, Arson
Document Summary
Context: mortgage fraud: (cid:1)intentional misrepresentation to a lender for the purpose of obtaining a loan that would otherwise not be authorized(cid:2, mortgage fraud has been steadily increasing, not all mortgage fraud is classified as white- collar crime. Mortgage fraud for housing - when offenders commit fraud in order to secure a loan to buy a house. Mortgage fraud for profit - occurs when offenders commit the fraud in order to reap monetary benefits. Types&of&mortgage&fraud: straw&buyer&fraudc&when&individuals&purchase&a& home&they&do¬&plan&on&living&in&and&then&deed& over&the&home&to&another&person, short&sale&fraudc&when&par@es&involved&in&a&short& sale&manipulate&the&process&in&order&to&convince& the&bank&to&allow&the&short&sale&to&occur, appraisal&fraudc&when&appraisers&misrepresent&the& value&of&a&home& Fraudulent activities include: charging for free information, misrepresenting pre-loan counseling, forgery, posing as government officials, and bundling unnecessary services. Types&of&mortgage&fraud: equity skimming/equity fraud- when investors default on the mortgage convince distressed homeowners to use the equity in the home to hire the investor to buy the home. They rent it back to the original owner and then: fraud during closing/settlement- fraudulent activities that occur at the end of a real estate transaction.