Affidavit of expert witness for mortgage fraud cases

Affidavit of expert witness for mortgage fraud cases

A mortgage is a loan that is given by a bank, a mortgage company or a financial institution to facilitate the purchase of a property. The mortgage serves as a debt instrument that can be secured using the property as collateral for which the borrower is supposed to pay a specified amount. The mortgages can also be described as claims on property or liens against property.

There are several types of mortgages but two of the most commonly used mortgages are the;

  • Fixed –rate mortgage– this is also known as the conventional or traditional mortgage. in this type of mortgage the borrower pays the same amount of interest for the period of the loan. These types of loans are usually considered as “stable “by most sellers.  In this type of mortgage the price of the interest does not change ,if the market prices rise the value paid remains constant and if the prices fall the borrower may be able to secure lower rates by refinancing the mortgage to get better terms.
  • Adjustable rate mortgage– this mortgage has fixed interests at the initial term of the loan but the rates fluctuate with the market interest rates. These changes in rates may happen either monthly or annually. This type of mortgage is particularly risky as you have to be able to pay more when the market shifts.

The other less common types of mortgages include; jumbo loans, VA home loans and FHA mortgages.

A mortgage fraud is an intentional misrepresentation, misstatement, or omission of information that an underwriter or a lender may be used to fund or secure a loan that may be secured by a property. Mortgage fraud can be initiated by the parties involved in the mortgage chain, who may benefit off skimming the property equity.

Mortgage fraud can either be for profit where industry insiders use their knowledge on the market to steal cash and equity from lenders and homeowners. This type of mortgage fraud occurs when the value of the loan is either modified or foreclosure is prevented by these unscrupulous individuals to the detriment of the borrower.

The other type of fraud is fraud for housing which is normally instigated by a borrower who may misrepresent their income or asset information so as to manipulate a properties appraisal value.  Such fraud cases may be discovered and the cases may be directed to the courts for action. In the court a forensic auditor acts as an expert witness for the case by presenting evidence that has been collected in the course of the investigation.  The witness will also come up with a statement signed under oath  to show that the information given is true.




Recent Posts

Leave a Comment

Contact Us