Lenders go high-tech to spot borrowers’ lies

More agents are limiting information about homes to make quick, full-price sales

Jenny Brawley and Paul Skeens
Jenny Brawley and Paul Skeens

From the August issue: It’s one of the most common lies that home buyers tell mortgage lenders, and it may be on the upswing: In order to get a lower interest rate and down payment, applicants say they plan to occupy the home as a principal residence, when in fact they have no such intention.

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The incidence of occupancy misrepresentation rose 20 percent between 2011 and 2013, according to giant investor Fannie Mae’s latest sampling of loans involving known fraud. [more]