From time to time, I'll have to deny a purchase money loan application where the borrower's documentable income is insufficient for a loan approval. Self-employed borrowers often find themselves in this situation, especially in the last two years as underwriting guidelines have tightened up.
It's understandable that taxpayers want to minimize their taxable income. The rub comes when the borrower asks "if there's any way" to bump up the income. My standard reply is to ask if they want to show more income on the current year's Tax Return and put off the purchase until such time as that can be done.
It's never fun to deny a loan, and since everyone in the transaction has an iron in the fire, so to speak, I get some heated phone calls as a result.
Here's why it's important to play the game by the rules.
TUCSON, AZ—A federal grand jury in Tucson returned an indictment against Juan Delgado of Tucson, Ariz., charging the defendant with four counts of wire fraud.
According to the indictment, Delgado received over $1 million in loans relating to the refinancing of three separate Tucson properties from March 2006 through July 2007. In obtaining these loans, Delgado submitted loan applications that contained material false information including falsely inflating his income and/or failing to disclose a liability. At the time of these loan transactions, Delgado was a loan officer. Each of the properties specified in the indictment went into foreclosure.
An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
A conviction for wire fraud carries a maximum penalty of 20 years’ imprisonment, a $250,000 fine or both for each count. In determining the actual sentence, the judge will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.
The investigation preceding the Indictment was conducted by the Federal Bureau of Investigations. The prosecution is being handled by Jonathan Granoff, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-11-3886-TUC-RCC
RELEASE NUMBER: 2011-254(Delgado)
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