Loan Fraud - Posted by Joe Shilemr
Posted by Joe Shilemr on October 02, 2005 at 03:55:02:
I have a quetsion regareds to loan fraud. My friend works as a loan officer, and he was doing a loan for his friend who is also a loan officer, they both worked for the same brokerage. Now the loan officer doing the loan gave his “client/loan officer friend” a Verification of Mortgage form to give to his landlord to fill out. The clients landlord was his father, and at the time he was out of town, but he gave verbal verificaton and right to his son to sign the Verification of Mortgage in his name. Later, the loan broker found out that the landlord did not originally sign the VOM and refused to let the loan fund. Escrow fell through, and buyers were very upset and felt everything was a fraud and decided to complain.
They took deposit from client at escrow failure and now want to file complain with DRE. Do you think they have credence to do so? And what would happen to Loan officer/client who signed VOM with permission and CONSENT from landord?
Thanks for your advice,
One final question have a question regards to real estate law. If a son hires his dad to be his realtor in a real estate transaction, and they find a house. Then they decide to write an offer at which point the realtor honestly forgets to disclose on the Offer that the buyer is the Realtor’s son, is this a serious offense or just would constitute a warning by California Real Estate Law? It was an honest mistake and he just forgot. The escrow later never closed because of loan difficulties, but do you think buyer can pursue something like this? The LISTING agent was notified in verbal that the buyers agent was his father, just honestly forgot to put it in writing.