The question: How do you compete against fraud? The answer: I haven't the foggiest!!
I recently pre-qualified a client for a $115,000 purchase and that was at the very high end of the purchasing scale based this borrowers scenario. I enrolled her into a web based home finding service. I received a message from my client stating that she talked with another loan officer and he had pre-qualified her up to $225,000. My client said "he told me that all I needed to do was tell him how much money I made and didn't have to prove it - do you have a program like that?"
Now this client worked full time grossing just about $2,000/month. My Realtor didn't know what to do. He told her to be careful about getting in over her head but she wouldn't have it.
The problem is since she was told she could purchase a 225k home, that is all she is interested in. I told her if she did purchase a 225k home, she would be commiting mortgage fraud. She hung up on me.
SO.... I ask the question again, how do you compete against fraud? Maybe the question should be, how long is it going to take before this type of lender simply goes away? Until us ethical lenders can educate everybody that falls for the "if its to good to be true....." type of deal, I fear we will continue to battle this scenario.
I KNOW I am not alone on this island.....well at least I think I am not - am I?
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