Lenders

Lenders are typically being violated in these mortgage fraud schemes.

When these fraudulent activities take place it is lenders that are usually paying the largest price. The loans that they have distributed are not being paid and they are left with property being foreclosed on. There are however circumstances that the lender is part of the fraudulent activity.

1. Failure of lender to disclose relevant information.

2. Lack of due diligence by lender to obtain all information required by the application.

3. In some cases allowing applicant or third party to assist with the processing of the loan.

4. Second loan information not being disclosed to the primary lender.