[Moe Bedard]

Judith.........

This was posted on a previous post by a mortgage loan underwriter about this very thing..........so I will repost it for your knowledge too......this is from the lenders standpoint..........


Previously posted by an underwriter in another members thread relating to this thread:
To represent to the new lender that things are AOK with the old properties and compel/induce the lender to make a new loan on a property with the express intention that after you get that loan the old properties are going to be either Shorted or just plain Walk Away is really, really a problem.....like loan fraud. We are not tolerating it and when we catch it and believe me sooner or later we will, well......we are not to happy with the situation. There is a SAR report filed and that can be very detrimental to anyone in the industry...that is a Suspicious Activity Report that is filed with the Treasury Department. The Feds can often and will more and more become involved in these matters as it is now the "new" thing....

It is considered confirmed material misrepresentation and they will act on it, so I do not advise that anyone consider doing it.

Do they catch everyone, no, but they are looking for it now as it has become epidemic and we are rather PO'd about it. So, do I like what the lenders did on these loans, no I do not, but can we continue to allow the excesses of the past that got us here? I have declined so many of these loans that were build on smoke and mirrors...and rightfully so it appears...we can not let this mind set continue, our credit markets are completely in disarray, we are verging on total recession and we are going there to the glee of the rest of the world with our high and mighty position that we have taken for so long....

So I do not support or advise the continuation of the issues that got us here in the first place.