Shady Dealings

Types of mortgage fraud schemes, according to a recent FBI survey:


Type of fraud Ocurrence* Description
Appraisal fraud 57% Appraiser fakes the value of the property.
Property flips 49% Property is bought and "flipped" to a new buyer at a price not supported by its actual value.
Straw buyers 39% Reported purchaser is not the person providing funds for the purchase.
Identity theft 36% Individual uses someone else's identity to buy a house.
Mortgage fraud investment schemes 27% Individuals invest in securities backed by fraudulent mortages.
Predatory lending 12% Lender victimizes the purchaser by providing loans with excessive fees and other high costs.
Silent seconds 10% A secondary loan is obtained against a property to support a down payment on the property without the knowledge of the primary lender.
Foreclosure schemes 7% Property is foreclosed upon by duping the property owner. Includes rescue scams.

* Percentage of schemes involving a certain type of fraud; percentages add up to more than 100 because there is substantial overlap.

SOURCE: FBI | The Washington Post


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