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FRAUD ON REAL ESTATE TRANSACTIONS

By
Mortgage and Lending with Jamestown Lending

In the years of underwriting, I have found a lot of fraud committed by loan officers, real estate agents and so on.  I have even experienced funders and closers committing fraud.  It does happen a lot.  When a loan is in funding, I have seen a funder sign a form that should have been signed by the borrowers in the beginning, but that was to easy to contact the borrower, so she signed their name.  I brought this to my supervisors attention many times and it was overlooked by their department.  I believe in being honest and my superiors didn't.  I honestly believe there are mortgage companies that are out there for the money in the end.  Get those loans closed and funded and go on to the next one.  Other underwriters have been in the same position as I, seeing it be done in front of them or what ever.  Needless to say, we weren't kept around very long because we as underwriters stood up for what we believe in.  I don't want any party to fraud.  It is called ZERO Tolerance.  I felt for a lot of the underwriters involved in voiceing what they had witnessed within the company, as I personnally had not seen it happen.  At least until they were relieved of their positions, then I witnessed.  What really upsets me, is that it doesn't bother the people that are forging clients names to any type of document.  Regardless of what it is, purchase contract, processing documents or loan documents, it is still fraud.  Any ways, if anyone has any comments, please let me know.  I believe all of us have been there and done that.  When you open your mouth on this, you need to start looking for another job.  They don't like to keep you when you are honest about things.

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Diane Bell, Hilton Head Real Estate, Bluffton
Charter 1 Real Estate, Hilton Head, Bluffton, SC - Hilton Head Island, SC
How unfortunate to know that this type of behavior exists.  My husband, an appraiser, sees so much of this in his line of work and has lost many an account because he couldn't or wouldn't do what was requested of him.  Good always wins out, though.  Sounds like you're on the good side.
Mar 27, 2007 09:47 AM
Marygrace Liparoto
The Charles Reinhart Company CRS, GRI, ABR (734) 497-6774 - Ann Arbor, MI
Ann Arbor Realtor
Who needs to commit fraud when there are programs called liar's programs, etc.?  No doc loans?  The rules change and the 10% scammer population find creative ways around the rules all over again.  Imagine the productivity that could be harvested from such innovative minds. 
Mar 27, 2007 09:50 AM
Connie Grove
Jamestown Lending - San Bernardino, CA

Thanks for your thoughts Diane.  Good for your husband to turn down such accounts.  There is many good people out there to work with and not the ones that cut corners

Yes, Mary, there are a lot of programs out there, but it just seems like it is easier to cut corners than to do what is right.

 Thanks for your comments.  It is nice knowing that there are people out there like you guys.

Mar 27, 2007 10:00 AM
Eddy Martinez
Nationwide Funding Group - Highland Park, CA

Fraud has been countered by Quality Control. My company has a QC department so this avoids all of this fradulent nonsense.

No doc loans are not liar loans. If a client has a high enough FICO to qualify for it he or she is rewarded to qualify for this type of documentation.

Eddy

Mar 27, 2007 10:12 AM
Connie Grove
Jamestown Lending - San Bernardino, CA
Eddy, you are right about No doc loans.  What I was mainly speaking about was the fraud involved in a lot of real estate transactions that have been witnessed.  I am not saying it is in every company, but it does happen.  It is just that it takes that added step to contact the client for a signature or correct any misinformation.  I have also worked in the QC department.  I had to QC all our underwriters and found a lot of things wrong on a file that had already funded and closed.  So what do you do in that case.  It gives you something to think about. 
Mar 27, 2007 10:22 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA

"When you open your mouth on this, you need to start looking for another job.  They don't like to keep you when you are honest about things."

That's a very sad commentary.

Mar 27, 2007 10:56 AM
Cynthia Sloop
Community Association Manager - Indianapolis, IN

I guess that people figure "it's no big deal" when they sign things they know someone else should have signed but I wonder how many would actually like to spend time in jail for something like that?  That's how I always felt when I worked a loan and that's how I feel when I write contracts now.  There's no one out there I like that much that I'm willing to sit in a jail cell for.

Glad to see you've taken such an interest in posting. 

Mar 27, 2007 11:24 AM
Connie Grove
Jamestown Lending - San Bernardino, CA
Ardell, yes it is a very sad commentary.  I saw 5 underwriters get fired over this.  Sad, but true.  Just because they would not turn their heads.
Mar 27, 2007 04:02 PM
Connie Grove
Jamestown Lending - San Bernardino, CA
Hi Cyndi.  I wouldn't go to jail for anyone.  I enjoy my freedon to much to jeopardize my future as well as my family.  But some people do seem to get by with it and think nothing about it.  It is easy to be honest and upright on all transactions.  It is when you are not is when it gets very sticky.  Once you lie, then you have to lie again to cover it up.  Just not worth it.  It takes up too much of your time and energy.  Do it right the first time, then you don't have to worry about it.  Talk with you later.  Give Bob a hug.
Mar 27, 2007 04:08 PM
Bob Sloop, Consultant, Indianapolis, IN
RS Mortgage Consulting - Indianapolis, IN

Connie, great post, your nailing this on the head, I am glad to see your here, and telling it like it is. 

By the way, no hug yet.

Mar 28, 2007 11:50 AM