CA Mortgage Expert Witness | Real Estate Expert Witness
Curtis L. Novy

Serving: Los Angeles, Oakland, Orange County, Riverside, San Diego, San Francisco

Mobile: 858-336-0520 or Email:


Common Types of Mortgage Fraud

  • Altered or Forged Bank Statements
  • Application Misstatement of Facts
  • Borrowed Down Payment Fraud
  • Buyer/borrower misrepresentation
  • Hard Money/Private Lender Fraud
  • Identity Theft & Transfer of Real Estate
  • Escrow Fraud
  • Income & Employment Verification Fraud
  • Fraudulent Gift Letters / Disguised Loans
  • Falsified Employment Documents
  • Occupancy Fraud
  • Falsified Documents & Forged Deeds
  • Loan Officer & Loan Processor Fraud
  • Wire Fraud
  • Mortgage Broker Fraud
  • Real Estate Broker Fraud
  • Private Mortgage Insurance
  • Reverse Occupancy Fraud
  • Title Insurance Fraud

Common Types of Real Estate Fraud

  • Appraisal Fraud
  • Buyer Fraud
  • Contract Fraud
  • Flipping Schemes
  • Seller Due Diligence & Fraud
  • Insider Family Property Sales
  • Notary Fraud & Forged Deeds
  • Real Estate Broker Fraud
  • Construction/Builder Fraud
  • Kickbacks & Payment of Referral Fees
  • Discriminatory Practices
  • Wire Fraud
  • Vendor Fraud
  • Home Owners Insurance Fraud
  • Denied Insurance Claims
  • Title Insurance & Escrow Fraud
Mortgage Red flags Alert*
  • Employment (occupation) does not “sensibly” coincide with borrower’s profile (age or experience)
  • Purported employer does not exist
  • Employer’s purported location cannot be ascertained
  • Paystubs sometimes lack typical withholdings (health, medical, 401(k), etc.)
  • Gift letters are substantial and are not (or cannot be) supported through re-verification
  • Paystubs are inconsistent with those from other loan files for the same employer
Reverse Occupancy Scheme Alert*

Fannie Mae’s Mortgage Fraud Program (MFP) alerts the industry to potential and active mortgage fraud scenarios. This alert addresses reverse occupancy schemes.

What is Reverse Occupancy? A borrower buys a home as an investment property and lists rent proceeds as income in order to qualify for the mortgage, but instead of renting the home, the borrower occupies the home as a primary residence. Common Characteristics of the Scheme Sales transactions involved in reverse occupancy schemes often have several common denominators, including, but not limited to:

  • The subject properties are sold as investment properties.

  • Purchasers are first-time home buyers with minimal or no established credit.

  • Purchasers have low income but significant liquid assets that are authenticated by bank statements.

  • Purchasers make large down payments.

  • The appraisal has a comparable rent schedule (to show expected rental income from the subject property).

  • Purchasers present “rent free” letters stating they are not paying rent to live in their primary residence.

  • Additional characteristics MFP has seen in reverse occupancy schemes include: The purchasers and other parties to the transaction belong to an identifiable group that share certain characteristics that are often seen in cases of affinity fraud.

  • Transactions occurring in a specific geographic location

*Source: Fannie Mae Fraud Alerts 2021


Contact Curtis L. Novy:
Mobile: 858-336-0520 or Email: