As part of a continuing series that aims to educate consumers on all aspects of the home buying process, Freddie Mac released a short video that tells consumers how to avoid mortgage fraud when applying for a loan.
In the video, Freddie Mac identifies several “red flags” that consumer should be on the lookout for, including:
- Being told to exaggerate your income, assets, credit, or provide false information someone says will help get the loan approved
- Being pressured to sign paperwork that you haven't had a chance to read or that you don't fully understand
- Being asked to release personal financial information online or over the phone by someone you don't know
Last year, as a part of the same education effort, Freddie Mac issued a warning to buyers and lenders about scams that offer the promise of a raised credit score in exchange for money.
Click here to read more from Freddie Mac about the need to be cautious of any person or credit repair service that offers “help” with one of three types of common fraud schemes that promise an increased credit score.
And watch Freddie Mac’s video about avoiding mortgage fraud below: