I can't independently confirm this, but it appeared on an investor's BBS I follow which has a whole lot of financial professionals as regular posters ...
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"the beginning of the end" for Real Estate as Stated Income (loans) drove the markets over the last two years. The following is (supposedly an internal communication) from a big (mortgage) broker (to staff / agents who originate new mortgage applications):
"'Every lender out there is vigilantly searching out loan files for anything that smacks of loan fraud. They are looking for the regular irregularities, such as altered documents, doctored VOM's, VOE's etc., even doctored credit reports and appraisals. They are also verifying that on Stated loans, that the information 'stated' is real. If you state that a person is a vice-president of a company, then he better be. If you state that he has 100K in the bank, then he had better have 100k. The excuse that 'the borrower told me so' doesnt fly with lenders, its the info submitted by the agent in the loan application that matters.
The more aggressive q.c. depts. are verifying that W-2's submitted are real, that paystubs are real, that signatures on the initial app match those on documents submitted at the end of the loan. They are matching signed loan doc signatures with initial loan doc signatures. They are verifying that faxed signatures and docs match those subsequently submitted. They are verifying that Appraisers are indeed licensed, and that his license is current. They are verifying all bank account numbers are valid, that the balances are valid, and that the employee signing the VOE, VOD, VOM actually exist and even verifying those signatures. (In other words, they are verifying the employment of the person who is verifying the employment of your borrower!!). They are even verifying that appraisal photos submitted with the appraisal for comps and for the subject property are real by sending out someone to drive-by those properties for verification.
In other words, there is an all out effort to catch anyone doing anything that smacks of fraud. If they think there's fraud, you are GUILTY until you prove otherwise. The consequences are becoming more and more severe. There is a movement to turn in anyone who commits loan fraud, even the most minor of incidents, to local civil authorities for criminal prosecution."'



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