Quicken Loans Encouraging Fraud

azcurious

LoanSafe Member
Sep 27, 2012
3
1
0
My Quicken Loans agent overstated my income by 10K per month on a URLA. Then when I called him out on it he stated that it was "in no way shape or form illegal to overstate income on a 'stated income' loan" I assume this is illegal am I correct? Also I have a recording of him telling me that. I can't imagine that this is kosher and if it is ultimately wouldn't it fall back on me if anything happened in the future?
 
  • Like
Reactions: williamsmacon

ArizonaMover

LoanSafe Member
Aug 19, 2012
10
0
0
Phoenix, AZ
Well, at a minimum one would think that if you have knowingly "mis-stated" your income on a stated income loan, then that is a problem and you won't be able to shift responsibility to your agent. As a practical matter I'm not sure what the ramifications are of getting caught, certainly if you default on the loan your problems would multiply.
 

azcurious

LoanSafe Member
Sep 27, 2012
3
1
0
The scary thing is that Quicken Loans is who my servicer Green Tree recommends I work with for a HARP refi. It was an obvious misstatement on his part as I clearly told him my salary and everything else I told him was correct on the app. Now even though he has changed it back to my true income I am nervous about continuing the process with him.
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
The tricky thing here is that if you signed the document where he had over stated the income that basically says you agree to that amount, you now may be complicit of the fraud. This is whether they did it without your knowledge or not becauset he signed document with your name is what the courts would look at. The loan officer pumped up your income so you qualify and now that he brought it back down to the truth, you may not qualify. The good news is that you caught it and called him out on it, but there may be bad news now because you may not qualify at your normal income.

A loan officers main incentive is to sale and close loans and sometimes many are willing to bend or break laws in order to do so. When anyone does business with a professional like this, you need to read all paperwork and by all means do not sign something that is not right or a lie because when you do, you are now complicit in the fraud by just your signature.