Looks like the FBI doesn’t mess around when it comes to sworn officers of the law and lying on mortgage applications (see story below). I understand it is breaking the law, but I think that if everyone was actually arrested for doing this, then we would have millions of people going to prison.
I have personally reviewed over 1,000 plus mortgages and I would say that I would find inflated or fraudulently stated income on 75% of the mortgage documents I looked at.
After a quick interview with the borrower, you would realize that they truly did not understand what they had signed or did. Many homeowners (people like you and I) are amazed that they committed fraud by signing these puffed up loan documents. Yes, FRAUD!
A majority of crimes were committed by sleazy loan officers or uncsruplulous mortgage broker who fraudently inflated the income to make the loan pass the lenders underwriting guidelines for income. Usually the borrower never knew it happened.
Countrywide Home Loans used to offer loans like the the Fast and Easy, AKA “Fast and Sleazy” where you state your income, assets etc. No verifications at all.
Hell, when you don’t have to prove nothing and no one is looking, people lied, cheated and stole from all sides of the mortgage table. But in the end, it was the bank who didn’t do their due diligence or had their thumbs up their wazoo to begin with. Oh well, that was so last years blog rants……
It seemed like everyone abused the virtually unregulated mortgage system. However it looks like Karma in the form of an FB and I may come to in the night and make you pay for your past home loan deeds.
Sacramento FBI agents arrested an Elk Grove police officer Thursday for suspicion of making a series of fraudulent statements on mortgage loans.
Ali Khalil, 29, is a three-year veteran of the Elk Grove Police Department.
The criminal complaint, investigated by agents of the Internal Revenue Service, says Khalil took out two mortgages, overstating his income on each one, and claimed both homes as his primary residence. One home was in Elk Grove and the other in Watsonville.
Written by Moe Bedard
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I disagree with your take that most people don’t know what they did. Please, these are adults therefore must take responsibility for their actions even though the banks and mortgage brokers are to blame as well. All in all, not one person is innocent in this mortgage mess we are in presently.