The Signs of Mortgage Fraud
Friday, April 19th, 2013If you’re unsure, remind yourself that “if it sounds too good to be true, it probably is.
Joe Richer • Sat. Mar. 2, 2013 • Toronto Star
Q: What are the warning signs of mortgage fraud? What can I do to protect myself?
A: Mortgage fraud is a complicated criminal act that is an ongoing concern for the real estate profession.
As the regulator responsible for upholding the integrity of the profession, RECO works in partnership with all parties involved in real estate transactions to investigate complaints to make sure real estate professionals are compliant with the law and impose disciplinary action on those found to have knowingly participated in fraud. As Registrar, my position is that any registrant proven to have knowingly participated in mortgage fraud faces losing their registration.
You can protect yourself from being an unwitting participant in mortgage fraud by being suspicious of situations where you are:
-Asked to overstate your income or make other false statements on a mortgage application.
-Asked not to complete certain sections of a form or sign documents that contain blanks.
-Are discouraged from visiting the property you’re purchasing or having it appraised or inspected.
If you’re unsure, remind yourself that “if it sounds too good to be true, it probably is.” If you suspect fraudulent activity, report it to the police.
If you have a question for Joe, email askjoe@reco.on.ca. Joseph Richer is RECO’s registrar and is in charge of the administration and enforcement of all rules under the Real Estate and Business Brokers Act. You can find more tips at reco.on.ca, follow on Twitter @RECOhelps or on YouTube at youtube.com/recohelps.
