Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Sub prime mortgage lenders encourage fraud

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September 07, 2005

Sub prime mortgage lenders encourage fraud

British regulators uncovered widespread mortgage fraud in sub prime lending. Government regulators identified several mortgage companies that actively encourage clients to lie on their applications. The most common fraud is to inflate the income to qualify for the mortgage.

It sounds that goverment auditing is relatively new thing in UK, especillaly when it comes to smaller mortgage companies.

The other area where regulators have found frequent violations is debt consolidation mortgages. 67% of reviewed cases involving debt consolidation had some degree of questionable practices.

Posted in Mortgages at September 7, 2005 08:07 PM

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