False Owner Occupancy Claims Dupe Mortgage Investors

Yet again we report news about how mortgage investors have been duped by false owner occupancy claims

The respected and highly influential international news resource Bloomberg have more details – quote – 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

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.

We advise all new and/or existing mortgage investors to check all the documents relevant to any transaction before signing a binding contract – in other words do not enter into business deals prior to implementing a due diligence and background profile check process!

Read the full Bloomberg clip here

http://www.bloomberg.com/news/2011-01-21/mortgage-investors-are-duped-by-claims-of-25-owner-occupancy-study-finds.html

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