Do You Know Your Mortgage Fraud Red Flags?

With a substantial increase in more full documentation loan applications, it is important to closely review the provided income documentation for inconsistencies. The following represent some common mortgage fraud red flags on the IRS Form W-2 or 1099:

Employer is a large, recognizable company, but forms are not computer-generated

W-2 appears typed, but paystubs are computer-generated

Different type or font appears within the income document

Employer identification number is formatted other than XX-XXXXXXX (two digits, hyphen, seven digits)

Employer and employee names and addresses are inaccurate and/or do not match the 1003

Form reflects even dollar amounts for wages and/or taxes

Income reflected on the W-2 or 1099 is different than the income reported on the loan application, Verification of Employment and/or tax returns

FICA and Medicare wages/taxes and local taxes, where applicable, exceed ceilings/set percentages

Tax withholdings are inconsistent with paystubs provided