The David Greene Show Mortgage Monday | How to Avoid Mortgage Fraud | Episode 94
11 snips
Nov 3, 2025 
In this engaging discussion, Christian Bachelder, an experienced mortgage broker, sheds light on the risks of mortgage fraud and compliance issues. They analyze the Letitia James case as a cautionary tale, emphasizing the importance of understanding occupancy requirements. Listeners learn about different loan types, common pitfalls like DSCR misuse, and how to navigate short-term rental rules. Bachelder shares best practices for avoiding fraudulent activities, urging transparency with lenders and awareness of legal obligations. This insightful conversation is a must-listen for anyone in real estate!
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Primary Loan Occupancy Rules
- Signers of primary residence loans must intend to occupy the property within 60 days and remain there for 12 months.
- Talk to your lender before making moves that shorten that period to avoid violations.
Get Approval For Early Moves
- If you must leave your primary within 12 months, get lender approval and document valid reasons like military orders or job relocation.
- Avoid trivial justifications such as moving down the street, which underwriters will likely reject.
Unbelievable Move Rejected
- A tech client in a $3M San Jose home tried to claim he'd move into a $450K triplex in Stockton and the underwriter refused.
- Underwriters reject moves that are not believable or warranted by the borrower’s life.