RISMedia just posted an article that says that what the FBI calls "Air Loans" are the Ultimate Mortgage Fraud. You can check out the article using this link;
http://www.rismedia.com/wp/2007-01-07/fbi-names-air-loans-as-type-of-mortgage-fraud/
Here is how it works; the perpetrator creates a non-existent buyer OR steals the identity of a real person and uses them as the borrower. Then they forge W-2's or 1099's and all the required documentation; drivers license, social security card, birth certificate and tax records and supply that to the lender. Fake pay stubs can also be created very easily.
To more easily facilitate the fraud, the con artist will create a phony title company and have all the funds wired directly into its accounts from the lender.
So how would this look to you and me? One person with 10 phone lines (need to have separate numbers for when the lender needs to reach the borrowers job for employment verifications!) sitting at home on the couch watching Oprah making up forms and documents and even properties for the non-existent borrowers to buy!
Mortgage Fraud is an issue that VanEd has designed some education courses online to cover, but in practice the evil-doers just get more and more.........busy. It seems so odd to me that someone would do so much work just to not work, and at the same time wreck havoc on innocent lives and credit reports. Amazing.
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