Home arrow Mortgage Forums arrow Loan Talk for First Time Home Buyers arrow

Why is stated income loan fraud so popular?

Author Message
Icon Mini Profile arya310706





Joined: 29 Jul 2009

Posts: 48

0.15 Dollars($)
Post Posted: Sun Aug 09, 2009 7:46 am    Post subject: Why is stated income loan fraud so popular?
Like 0
Dislike 0

Why is stated income loan fraud so popular?
Icon Mini Profile Realgeni





Joined: 13 Apr 2009

Posts: 1434

99.76 Dollars($)
Post Posted: Sun Aug 09, 2009 8:14 am    Post subject:
Like 0
Dislike 0

check this

http://www.mortgagefit.com/predeal/about24105.html

Good luck
Icon Mini Profile merry809





Joined: 10 Aug 2009

Posts: 35

0.02 Dollars($)
Post Posted: Sun Aug 16, 2009 8:19 am    Post subject:
Like 0
Dislike 0

Declare the large income than actual income you have and off you.this is done by home buyer for more loan amount and they might feel that they might not qualify for loan under documentation they have with them.

Home loan office can prevent to do this lying on stated income home loans.
As this type of home loan fausd is very easy.
One important thing is Stated income mortgages are designed for non-salaried borrowers.

There are some borrowers can not show tax return as documentation for such people it is initiated.

In general mortgage loans requires that the borrower is underwritten for income amount that can be verified. Home buyers whose income comes from commission or jobs might have to declare their earnings and go reduced doc to get the loan they need.

Stated income borrowers are usually asked to sign IRS Form 4506. That is, a permission to the lender to verify income if doubts arise. sometimes W2s and tax returns will not be evidence of fraud but still having to sign this form discourages borrowers from overstating their income.

It is prime responsibility of lenders to do check income source on stated income home mortgages.
Lender will do income verification but not sure they will ask for form no. 4506. Loan officer will not care of incoming and outgoing of income. But they will take care of borrower's outstating earnings.
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1

 
Highlights
Bookmark this page
Share |

Helpful References
Mortgage Guide
Mortgage Terms
Mortgage News
Book Center
Shop and Compare lenders
30 Yr. Fixed Vs. 5/1 ARM


Calculators     [View all]
Are you eligible for loan?
How much you can afford?
Calculate monthly payment
Calculate APR


Financial Tools
Credit Repair Tool New
Mortgage Planner
Simple Budgeting Tool


Our Community
MortgageFit Blog
Community Professionals
Community Rewards
Introduce yourself
Website tools


Community Rewards
Five simple ways to earn money with the Mortgage Community.

MortgageFit on Twitter

Followers (265)








Community Chat

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0
Page loaded in 21.086 seconds.