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https://fundingshield.com/mortgage-lenders-fraud-prevention/<br>
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Introduction • Buying a home is not a small feat. It is one of the most exciting things do in your life. Not to forget it is also likely the most expensive. Most of the people invest their entire life’s savings in buying their dream house. Everyone needs to take out a mortgage to help finance the purchase of their home. You cannot escape it unless you have a truckload of cash. • It is a nerve-wracking affair to apply for a mortgage, more so if you are doing it for the first time. This is a complicated financial procedure that requires thorough knowledge and careful attention to details. In the absence of adequate measures and care, there are chances of being fleeced by unlawful elements on the look for committing mortgage fraud.
It is not less than devastating to be scammed out of your home financially. Traditional mortgage lender fraud refers to situations in which homebuyers and/or lenders provide false information to acquire a home loan. False information can comprise of overvalued appraisals, guarantees of low interest rates, inflated income and the fraudulent use of someone’s name without the knowledge of that individual. • It must be remembered that mortgage fraud is a criminal act or felony that means obtaining a mortgage on the basis of deliberate false claims on your application. The seemingly harmless 'little white lie' you tell while applying for your mortgage can still land you in trouble for committing mortgage fraud.
Funding Shield provides the mortgage industry highest level of protection in the funding process to close mortgage loans. It works tirelessly to protect against loss of funds due to inaccurate and/or insufficient documentation, diversionary wire practices or parties closing in excess of their coverage limits from closing agents or attorneys which could jeopardize closing protection letter coverage. It leaves no stones in providing Service Provider Complianceand monitoring at the transaction level, not by assigning risk tolerance or rating levels to parties but by active monitoring of its clients closings and inspection of the necessary documentation to make an assurance of a valid CPL.
What qualifies as mortgage fraud? It must be remembered if you omit any information, or make false claims about your income or financial status, or hide information regarding your financial obligations such as loans or credit cards, you could endanger your prized possession, your home at risk, while at the same time breaking the law. This stands true whether you are buying a new property, or applying for a new mortgage.
Why do people commit mortgage fraud? The lure of big money involved in the mortgage industry makes unlawful elements conspire to commit mortgage fraud. This has resulted in mortgage lenders becoming stricter regarding their borrowing criteria as there are increased incidents of more people making fraudulent mortgage applications.
How does organised crime use mortgage fraud? Mortgage fraud is popular with organised crime groups as it can be profitable and relatively low risk. Frequently it is used as a way of laundering money obtained from illegal activities such as supplying drugs and trafficking. One way in which it happens is by over-valuing properties, forged documentation, and inflating the value of commercial property using fraudulent leases.
How do I defend a charge of mortgage fraud? If you are facing the possibility of prosecution for mortgage fraud, then it is important that you speak with a solicitor as soon as possible. It is essential that the solicitor you chose understands the nature of mortgage fraud as it can be highly complex. Most people accused of mortgage fraud are unacquainted with the English justice system and are of good character, never having been convicted of a criminal offence. Our specialist local solicitors understand that your good reputation is very important to you and they have experience in defending complex fraud cases.
