By Marcie Geffner - HSH.com
Mortgage fraud might seem like a deliberate, straightforward action: either you did it or you didn't. But in fact, any inattentive borrower could get caught up in a scam and later be accused of fraudulent activities.
That warning comes from Curt Novy, president of Corporate Mortgage Advisors, a mortgage fraud analysis firm in San Diego. Novy says he's seen plenty of dicey situations in the 150 or so fraud cases he's worked on in the last five years.
"There are borrowers who didn't know the mortgage broker was committing fraud," he explains. "They didn't understand there were illegal activities, yet they're under the microscope and may have some liability. Did they know or did they just believe what the broker told them?"