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.
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]