Mortgage News

Liar Nation

(11-20-09) At some point you begin to question whether there are any honest operators left. It was a chain reaction of easy money, greed and dishonesty that led to the mortgage crisis, starting with Wall Street, the credit rating agencies, the banks, the brokers and ultimately the consumers. And yes, looking the other way and failing to perform basic, simple due diligence is dishonest, especially when you are being amply rewarded for doing so. We have created a culture where the incentives for dishonesty are pervasive. Wall Street and the banks have been rewarded with taxpayer funded bailouts and obscene bonuses even though they brought the global economy to its knees and none of the key players appear to be headed to prison any time soon for their egregious risk taking backed by Uncle Sam's ever-ready safety net. Is it any wonder that the consumer has continued along the same path of dishonesty as well? Why not, when it seems to be working so well for bankers and Wall Street titans?

The fraud of understating ones income is running rampant in the new mortgage universe of loan modifications. Throughout the run up leading to the housing bubble, borrowers grossly overstated or exaggerated their income (they lied) in order to qualify for a home that would (supposedly) always go up in value and now that values have plummeted they are doing the exact opposite in order to qualify for a modification of their loan. Loan modification fraud is on the rise as lenders require some type of proof of hardship in order to approve a borrower's request for a reduction in their mortgage payment. As a result borrowers are attempting to conceal assets and they are misrepresenting or outright lying about their income again. In some cases it has been reported that coworkers are being asked by hopeful loan modifiers to lie about their income on employment verification forms as well as their potential for being laid off from their job. Loan modification fraud is being reported even in cases where a borrower is financially able to continue making their full payment but would simply prefer not to. Fraudulent short sales occurring between family members has also been reported in a covert attempt to remain in possession of a property and secure a lower payment along with a sizeable reduction in principal by the lender. Looks like we've come full circle and nothing has really changed except the direction of the economy. What a tragic path we have taken when people are continually rewarded for doing the wrong thing.

 

Continued at Mortgage Modification Madness Part II

Mortgage Modification availablr for jobless!

Follow the link to continue reading the related articles.

More Mortgage Help on the Way?

New FHA Program Launches: Details, and How to Apply

Lending Standards Stricter Industry Wide

Fannie Mae & Jumbo Mortgage Rates

Just One Click! = Current Rate Chart

Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachusetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California

Start by selecting your state





iPad for Mortgage Rates