RE:RE:RE:RE:Some questions for Home Capital GroupYou're in the US, yes? Perhaps this practice is more prevalent there.
Regardless, any employer would need their head examined if they did sign off on that. The potential liability (paying the increased wages 'promised' to the employee) as well as the potential fraud charges.
I hope that you fired your employee, if not reported him to the proper authorities. I wouldn't trust him not to steal from me if he is willing to cheat on his mortgage application.
What banker provided the information to you? Was this a director or officer of the bank? A branch manager? Loan officer? A disgruntled teller?
And yes, as long as the bank has registered the loan, it can be detected. Then its up to the bank to decide how to proceed. What the borrower can't do is borrow twice (or more) with the same collateral (Note: A second mortgage does not have the 'same collateral' as a first mortgage as they have different levels of protection and call on the asset(s).)
TITOOO wrote: A couple of years ago an employee of mine asked for an employment & income reference as he was buying a house and needed a mortgage. I answered the questions truthfully and submitted the document to the financing company. A couple of days later the employee came back to me and asked if I could provide the financing company with a higher income which I refused to do (employee still bought his house). I wonder how many other employers gave in and provided a higher figure than was true?
This story is the tip of the fraud iceberg known throughout the mortgage industry. Open up CMHC and look at all the mortgages to see how big an issue is at hand.
Verifying income should a required first step for all real estate transactions. A banker informed me that speculators are getting mortgages / home loans without disclosing loans that they have already taken out at other banks. I was surprised to hear this as I didn't think that borrowers can do this without being detected.