Mortgage investors are duped by false owner-occupancy claims, study finds

Borrowers either never moved into or later vacated homes for at least 25 percent of U.S. mortgages that were described as being for “owner occupied” properties when bundled into securities, according to 1010data. Misrepresentation of a mortgage’s intended use as a residence accounts for about half of the falsely labeled loans, with the rest reflecting borrowers that subsequently moved out, according to a study by the New York-based firm, which sells software used to analyze data. The mortgages were packaged into bonds without government backing from 2004 through 2008.

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3d rendering of a row of luxury townhouses along a street

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