Friday, December 21, 2007
Scams to defraud mortgage companies
Mortgage companies made themselves vulnerable to fraud by bringing in "stated-income loan" also known as "liar lones". Even big names like Bear Sterns got defrauded this way. "Mr. Wright was a phone technician earning only $105,000 a year, with assets of only $35,000, and his wife was a homemaker. The palm-tree-lined mansion they purchased with Bear Stearns's $1.8 million (after claiming he earned $50,000 a month) recently sold out of foreclosure for just $1.1 million."