Mortgage Fraud Solicitors at MB Law Ltd can provide you immediate assistance or free initial advice
If you are accused of committing a Fraud. Please call us on our 24×7 Emergency: 07737996126 -or- 07940234801 for our mortgage fraud solicitors or for more details
Mortgage Fraud Solicitors– Mortgage Fraud has now become a severe issue these days and the clear evidence of mortgage fraud suppose to be recognized with the help of certain misconceptions between the actual terms offered by the mortgage lender.
Mortgage fraud is a crime in which the intent is to omit information or materially misrepresent on a mortgage loan application to obtain a loan or to obtain a larger loan than could have been achieved and either lender or borrower knows the reality.
Classification of Mortgage Fraud
Mortgage Frauds can be classified into several types. These type of frauds can happen by the misconception of the actual information as well as data to gain more and more mortgage contracts injudiciously.
Mortgage fraud is not to be sophisticated with rapacious mortgage lending. Mortgage fraud occurs when a consumer is misled or deceived by an agent of the lender. However, rapacious lending practices often co-exist with mortgage fraud.
The Fraud Act 2006 often referred to save the general public from such frauds and the need of the hour is to coach them on the basic components of mortgage frauds as real estate fraud, and the way such frauds happens would guide the general masses to identify them and nip them from the bud.
Background of Mortgage Fraud
Mortgage Fraud has continued to increase since the release of the first mortgage fraud White Paper in 2005. Declining economic conditions, liberal underwriting standards, and declining housing values contributed to the increased level of fraud. Market participants are perpetrating mortgage fraud by modifying old schemes, such as property flip, builder-bailout, and short sale fraud, as well as employing newer schemes, such as buy and bail, reverse mortgage fraud, loan modification, mortgage servicing fraud and refinance fraud.
Brokers have played a critical role in the wholesale loan origination process and have a significant influence on the total loan transaction. Brokers have served as the point of contact for the borrower and the lender and coordinated the involvement of other parties to complete the transaction. A broker can perform some or most of the loan processing functions. But not limited to, taking loan applications, ordering credit and title reports, verifying a borrower’s income and employment etc.
Once the broker has gathered the necessary information, the application is submitted along with supporting documentation to one or more financial institutions for underwriting. The financial institution’s underwriter reviews the information and makes a credit decision. The financial institution also may perform pre-funding quality assurance activities, such as verification of income and employment.
Types of Mortgage Fraud
It takes place in case of an individual buyer of a house through a mortgage scheme, who takes the opportunity to have a higher mortgage than they should be supposed to get. They do this kind of happening by providing information which is untrue, unreal or by failing to provide certain information which by law they should be required to disclose.
This type of fraud happens due to following circumstances
• The individual’s income, identity, employment, and other debt obligations.
• The price to be paid and whether any payments have been or will be made directly between the seller and the purchaser.
• The other sources of funds for the purchase other than the mortgage.
• The value of the property.
As from the name we can depict that this fraud is committed on a larger scale than opportunistic mortgage frauds. And involves several properties, often being committed by criminal groups.
This fraud happens due to following reasons:-
- The nominated purchasers who are taking out the mortgage will often have no beneficial interest in the property.
- In many cases, the mortgage payments are not met. Often when this is the case, the properties deteriorate and are simply used for other criminal activities – these activities often center on drug production, prostitution, and unlicensed gambling.
Who can You contact for advice? | MB Law Ltd Solicitors can help You Regarding This
Please feel free to contact our Team of Regulatory lawyers who specialize in all the above-described matter related to Mortgage Fraud. Here MB Law Ltd Solicitors provide you with experienced solicitors to all parts of London namely Hounslow, Uxbridge, Ealing, Kingston, Sutton, Harrow Wood Green, Leyton, West End, Knights Bridge, Croydon, Bromley, Greenwich, Poplar, Ilford, Romford, Redbridge, Westminster, Brent, Islington, Havering, Barnet, Enfield, Wandsworth, Southwark, Barking and Dagenham, Bexley, Newham, Lewisham, Camden, Barnet, Havering, Merton, Hammersmith and Fulham, Hillingdon, etc.