A mortgage fraud in which a borrower misrepresents the facts related to the occupation of the house to be acquired. Occupancy fraud occurs when a borrower who applies for a mortgage to buy an investment property states in the loan application that the house will be occupied by the owner.Financial institutions that offer loans tend to give lower interest rates to mortgages on owner-occupied homes, contrary to investment properties that receive higher interest rates based on the higher delinquency risk.
Related information about occupancy fraud:
- Occupancy fraud: Risks not worth the rewards
Apr 4, 2012 ... Misrepresenting your intention for your property could constitute as occupancy fraud.
- Mortgage fraud - Wikipedia, the free encyclopedia
Occupancy fraud: This occurs where the borrower wishes to obtain a mortgage to acquire an investment property, but states on the loan application that the ...
- Occupancy Fraud - The Blanch Law Firm, PC
Occupancy fraud defense lawyers at The Blanch Law Firm, P.C. provide legal defense services for those accused of mortgage fraud and other white collar ...
- Occupancy Fraud, We're Watching You
Feb 7, 2008 ... It used to be the number one form of fraud: a buyer saying they intended to occupy a property when they never did.If you don't know why an ...
- Catch Them -- You Can - Scotsman Guide
It's possible to snag occupancy-fraud red flags even before they're planted ... Occupancy fraud is a serious concern to mortgage professionals. Defined as the ...
- Occupancy Fraud Definition | Investopedia
Occupancy fraud happens when the borrower says that a home will be owner occupied, when in reality it will not be. Mortgage lenders typically offer lower rates ...
- Occupancy Fraud Definition & Example | InvestingAnswers
We explain the definition of Occupancy Fraud, provide a clear example of how it works and explain why it's an important concept in business, finance ...
- Report Reveals Disturbing Jump in Occupancy Fraud Risk
Jun 1, 2011 ... According to the most recent data available, the Occupancy Fraud Risk Index rose by 25 percent, and five Metropolitan Statistical Areas (MSAs) ...