Yesterday the FBI and the Mortgage Bankers Association reached an agreement to fight mortgage fraud together. The new effort is designed to educate consumers and mortgage lenders about the penalties and possible prison terms associated with mortgage fraud.
The FBI’s Mortgage Fraud Warning Notice states that it is a federal crime for any person to make [...]
Mortgage Fraud is real and rampant in the United States according to the FBI. The Federal Trade Commission estimates that mortgage fraud has cost businesses nearly $48 billion and consumers about $5 billion in the past 5 years. There are some cases that involve appraisers, lenders, attorneys, and real estate agents. While other scams can [...]
Risk is the term used to describe the potential negative impact to something of value that might occur based on some future event. The 30 year fixed-rate mortgage has very little risk. You know with 100% certainty, that your principle and interest will remain constant for the next 360 months. Some borrowers who plan to [...]
It does not get much worse than foreclosure. Think of it as the worst case scenario that both you and your lender want to avoid. Nobody wins in a foreclosure situation. The mortgage company has no choice once a borrower gets so far behind in their payments and is forced to initiate the legal process [...]
In most cases, subprime loans are for borrowers with impaired or limited credit histories. This has been one of the fastest-growing parts of the mortgage industry. Over the last few years, subprime lenders have helped open the door to home ownership for many borrowers who might not have otherwise qualified for a home loan. These [...]
