Welcome to True Lies, a new bimonthly series from Freddie Mac that will share real stories from our Fraud Investigation Unit’s experiences in the field.
Statistics on fraud can reveal a problem, but “True Lies” will spotlight more than trend data. Here are a few topics, based on actual investigations, that we'll share with you over the coming months - so you can stay informed of current schemes:
- Falsified college transcripts: We discovered a case where the same broker originated loans for borrowers who claimed to be recent college graduates who worked at a small auto shop − yet each allegedly had enough funds to buy a house in Northern California. Sound fishy? We thought so too.
- False employment: A Southern California mortgage originator/brokerage handed off fraudulent loan packages to third-party brokers. The case revealed false employer websites, phony college diplomas, misrepresented funds and more.
- Reverse occupancy: Our investigation revealed a pattern of borrowers living in New York properties that had been represented to be investments. We discovered bank statements showing no activity for months, and friends and family providing the borrowers the funds for closing.
- Fake paystubs: Another California case showed fabricated income documentation, including paystubs from multiple borrowers working for different employers in different cities. They were qualified due to alleged promotions or changes in employment status.
When we suspect wrongdoing, we send our investigators out to get answers − and act. If you spot or suspect fraud, let us know by contacting the Freddie Mac Fraud Hotline at 800-4FRAUD8.
Look for True Lies stories throughout the year.