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#1780205 - 01/28/13 02:55 PM SAR?? -Is it potential mortgage "occupancy" fraud?
unknown Offline
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Mr. John Doe applies for a refi for their new primary residence. During the conversation with the loan officer, John Doe states that he just recently refinanced their other home through the HARP program (as a primary residence)at another bank. They now have renters living in their other home.

Since John Doe made that statement to the loan officer of what he did at another bank, would this be SAR worthy (solely based on what he said)?

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#1780219 - 01/28/13 03:17 PM Re: SAR?? -Is it potential mortgage "occupancy" fraud? unknown
rlcarey Online
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There are HARP programs for non-owner occupied properties.
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#1780230 - 01/28/13 03:25 PM Re: SAR?? -Is it potential mortgage "occupancy" fraud? unknown
edAudit Offline
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You are here
They may have also been owner occupiers at the time of the HARP.
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#1780284 - 01/28/13 05:12 PM Re: SAR?? -Is it potential mortgage "occupancy" fraud? unknown
hgliii Offline
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The question is what is the intent of the HARP and that can change with change of circumstance after close. It is very difficult to prove what is "intent" of a borrower. Did your LO ask if they "intended" to purchase the new home prior to closing on the HARP loan? The answer to that question would determine whether a SAR is filed.

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#1780311 - 01/28/13 06:10 PM Re: SAR?? -Is it potential mortgage "occupancy" fraud? unknown
rlcarey Online
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Did your LO ask if they "intended" to purchase the new home prior to closing on the HARP loan?

What purchase? These are both refinance transactions.
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#1780320 - 01/28/13 06:19 PM Re: SAR?? -Is it potential mortgage "occupancy" fraud? unknown
unknown Offline
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They closed on the HARP loan in September. Three weeks later, they bought their new primary residence (paid in full). Then came to our bank (in January) wanting to refinance their new residence.

It's hard to tell what their intention was. But it also seems to fit the description of occupancy fraud...???

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#1780326 - 01/28/13 06:26 PM Re: SAR?? -Is it potential mortgage "occupancy" fraud? unknown
rlcarey Online
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Why? Who did they lie too? I think you are jumping to conclusions without any facts. What law is suspected to have been broken? Is there a prohibition in the HARP program in which they were originally approved that prevents them from establishing a new owner occupied residence at a later date? I just don't understand the actual concern here without more facts.
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#1780655 - 01/29/13 02:57 PM Re: SAR?? -Is it potential mortgage "occupancy" fraud? unknown
HappyGilmore Offline
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Pulling people out of the ditc...
I'm confused how they can refinance a mortgage loan on their primary residence that you said was paid in full?
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#1780667 - 01/29/13 03:05 PM Re: SAR?? -Is it potential mortgage "occupancy" fraud? unknown
Kathleen O. Blanchard Offline

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By refi they just mean a loan to cash out.
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#1780762 - 01/29/13 05:24 PM Re: SAR?? -Is it potential mortgage "occupancy" fraud? unknown
hgliii Offline
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apologize for confusion, I assumed they purchased second home after the HARP and decided to refi it after purchase.

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#1780778 - 01/29/13 05:40 PM Re: SAR?? -Is it potential mortgage "occupancy" fraud? unknown
Kathleen O. Blanchard Offline

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They did purchase another home after the HARP, but have no mortage on that property. They want a "refi" to cash out - there is no mortgage to pay off but many customers and banks use the term refi for these loans.
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