Real estate finance professionals have been reading a lot about mortgage fraud in recent months. But beyond the high-profile names connected with these allegations are lesser-known nuances for legal professionals to consider in such matters.
During the latest episode of the Keys to Real Estate podcast, attorney and former Consumer Financial Protection Bureau Senior Counsel David Friend joined host Mary Schuster to unpack the difference between “fraud for money” and “fraud for housing,” as well as why proving intent is so difficult.
“You have to show, beyond a reasonable doubt, that what the person’s intent was to defraud, to misrepresent in order to induce some sort of benefit back to them,” Friend said. “That becomes difficult when you’re just looking at a file.”
Friend highlighted the various scenarios real estate professionals should watch for in today’s market. He described which details included on mortgage documents can be misrepresented, either intentionally or by mistake, as well as the tax implications of different occupancy statuses.
Listen to the full episode by going to https://www.valuationreview.com/vr/keys-to-real-estate-vr/mortgage-fraud-in-focus-primary-residence-secondar-64.aspx