Even though mortgage fraud this year is about 40% lower than last year, lenders are still under investigation for the amount of fraud that has occurred. Fraudulent mortgages total $7.4 billion dollars this year. These investigations usually start when you apply for you mortgage and the lenders verify your social security number and identity. During this investigation they are looking to confirm income issues, large bank deposits, your address, often credit checks, and new or undisclosed debts that you might have.
Lenders Spark Investigations