BiggerPockets Daily Mortgage Fraud Gains New Scrutiny With Several High Profile Cases
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Sep 15, 2025 Recent allegations of mortgage fraud have caught the attention of high-profile figures, including politicians. The discussion dives into the rising trend of fraudulent mortgage applications and their implications for the real estate market. Various types of fraud, like origination and occupancy fraud, are illuminated, alongside the serious legal consequences. The podcast encourages listeners to consider the ethical challenges in navigating these murky waters and what this means for investors.
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High-Profile Mortgage Scrutiny Rises
- High-profile figures face mortgage-fraud scrutiny for claiming multiple primary residences to get better rates.
- Fraudulent applications rose 8.3% in 2024 and 7.3% in Q1 2025 according to Cotality.
Primary Residence Rules Create Gray Areas
- Rules like the two-out-of-five-year standard make primary-residence status blurry and invite gray-area interpretations.
- Matt Mir points out frequent moves and split-time living create genuine ambiguity about allowed occupancy claims.
Switching To Proactive Home Security
- The host describes switching to SimpliSafe after a night that revealed he wasn't a vigilante homeowner.
- He values proactive AI monitoring and human agent response for home security.