Borrowers Beware: Mortgage Fraud –

Mortgage fraud is on the rise, and borrowers are increasingly likely to encounter it and may even knowingly or unknowingly become part of it. According to the FBI, mortgage fraud can best be understood as a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan. In some situations, people intentionally engage in mortgage fraud because they see it as a “get rich scheme.” Other times, people do it without knowing or understanding that their actions are defrauding a lender. Although most fraud schemes target first-time homebuyers, seniors, and minorities, more people are becoming targets as credit requirements tighten because of the upheaval in the sub-prime markets and as foreclosures increase as a result of declining property values.

Traditional Lenders: MOO Over!

Nikolay and Marina, a Connecticut couple and parents of two, emigrated from the former Soviet Union and came to the United States. Today they are achieving the American dream with a little help from USDA Rural Development. As new citizens, Nikolay and Marina needed assistance navigating their way through the sometimes daunting process of American home buying as well as finding financial aid, to keep their monthly payments within their budget.

The USDA’s Windsor, Connecticut, Rural Development office assisted the family with a Single-Family Housing Direct Loan application. Nikolay and Marina were surprised to learn they also qualified for a subsidized in ...