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How to avoid a mortgage fraud scheme

On Behalf of | May 6, 2022 | Uncategorized

Mortgage fraud has had a major negative impact on the economy of the United States. You should be aware that this is a crime that carries severe penalties in the state of Mississippi. There are many different types of schemes that can fall under the heading of mortgage fraud. You need to be able to avoid them.

Predatory lenders are a major menace

There are a wide variety of schemes and scams that make up the category of white-collar crime. Predatory lending schemes are one of the most common and egregious. You may receive an offer from a lender that entails receiving a sum of money at ruinous rates of interest. The money that these lenders receive may not be accounted for in a legal manner.

These predatory lenders are a major contributor to mortgage fraud. They also tend to work hand in hand with other scammers. These can include foreclosure rescue and mortgage reduction scammers. All of these are mere schemes that are designed to drain your bank account without giving you any legal advantages.

Industry insiders can commit fraud for profit

You should be aware that the DOJ is stepping up its prosecution of white-collar crimes. Its clear intention is to crack down on industry insiders who use their authority or knowledge to commit fraud for profit. This involves misusing the lending process for mortgages in order to steal from lenders or homeowners.

There are also many types of direct housing fraud that you will need to be aware of. A borrower may misrepresent their income and assets on an application for a loan. They may also try to bribe an appraiser in order to give a false value. If detected, these actions fall under the DOJ heading for white-collar crime.