Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

Fannie Mae identifies new fake employers being used on mortgages

Five California companies appear to not actually exist

The number of fake employers showing up on borrowers’ mortgages is growing.

Earlier this year, Fannie Mae issued a warning to lenders after identifying more than 30 companies that appeared to be fake that were showing up on borrowers’ mortgage documentation as their place of employment.

The 30 companies were generally located in the Southern California and Los Angeles County areas. But the wave of fake employers spread throughout California, as Fannie Mae later called out 10 more potentially fake companies located in Northern California, including some in Silicon Valley.

Now, Fannie Mae is issuing another warning, telling lenders that it has found five more potentially fake employers in the state of California.

The newly identified potentially fake employers are:

  • BTR International, located on S. Olive in Los Angeles, CA
  • Building Blocks Learning Center, located on Calabasas Rd. in Calabasas, CA
  • Digicox Printing Material, located on Sherman Way in North Hollywood, CA
  • Volt Temp Distributors, located on Gladys Avenue in Los Angeles, CA
  • Western Law Group, located on W. Glenoaks Blvd. in Glendale, CA

According to Fannie Mae, there are a series of red flags that lenders should be on the lookout for on loans that could include a fake employer or other potential mortgage fraud issues, including:

  • TPO / broker loans
  • Originated 2015–2018 (present)
  • Employment (occupation) does not “sensibly” coincide with borrower’s profile (age or experience)
  • Borrower on current job for short period of time
  • Prior borrower employment shows “Student”
  • Starting salary appears high
  • Purported employer does not exist
  • Employer’s purported location cannot be ascertained
  • Paystub templates are similar for various employers across other (involved) loan files
  • Paystubs sometimes lack typical withholdings (health, medical, 401(k), etc.)
  • Gift letters are substantial and are not (or cannot be) supported through re-verification

Most Popular Articles

Better.com lays off LOs, secures $750M cash injection

Digital mortgage lender Better.com is laying off 9% of its workforce ahead of a $750 million cash injection from financial backer SoftBank Group.

Dec 01, 2021 By

Latest Articles

Who’s afraid of the PSPA?

Stakeholders are divided over whether, in light of proposed changes to its capital rule, the FHFA should retool its agreement with the U.S. Treasury and remove policies some say never belonged there in the first place.

Dec 06, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please