The answer to the question, can you do what a loan officer tells you, is "yes and no".
Quite simply, if a loan officer tells you "it is OK with me, but just 
don't put it on the contract or the HUD" --- it is NOT OK to do what that loan officer tells you. If you do, you are most likely committing fraud against the lender. If it is not going to be fraud, why can't you put it on the contract as well as the HUD?
If you work in my office, you are told to never do anything to close a deal that is not on the contract and on the HUD. The lender must know everything that is going on with this particular deal.
So, yes you can do what a loan officer tells you as long as it is on the contract and the HUD.
Just this week, one of my agent-owners had a loan officer tell her client --- "everything will be fine with the underwriter if you just produce a lease on the home you have not been able to sell -- just get a friend to sign a lease -- all we need is the lease paperwork"
Now, what do you say? The buyer has notified the agent-owner of what the loan officer told her. Of course, the agent-owner will not be actually involved in obtaining the fake lease. Is the real estate agent-owner safe with her knowledge that her buyer really does not have a tenant for her property or will she be committing fraud against that lender if she doesn't stop this?
Broker, SC Certified Trainer, Relocation Director
Co-founder of AgentOwned Realty
Liz@AgentOwned.com
843-725-5007
The AgentOwned Realty serves your real estate needs for:
Isle of Palms, Sullivan's Island, Daniel Island, North Charleston,
Summerville,Goose Creek, Moncks Corner, Santee, Manning, Sumter, Florence, & Myrtle Beach, all in South Carolina
Girl That is one I have had to draw the line on several times. If she knows of fraud she is an accessory after the fact if she doesn't stop it. Have it done legit or not at all.
If she has knowledge of the loan being approved with information that is definitely not correct that IS fraud. Faking a lease in order to qualify is no different than making up false tax returns. RUN from that loan officer.
Oh, I always say, I won't risk my license for one tranaction because my license is worth more than that one transaction. So yes, I would consider this fraud and would not be party to it or let it fly having knowledge of it.
Hi Liz, the first 3 posts I read tonight all asked me a question! Oh boy, another test.
Here is my answer... fraud fraud fraud, so no no no. :D
Tell that agent to not only to tell the buyer to fire that lender, but to have your agent run from that lender fast! It is just a matter of time before the board gets a hold of his records as well as his lenders. (He knows about it, he is also committing fraud)
Good post with gerat information, Liz.
No, no, NO! I would get away from this as quickly as possible.
FRAUD FRAUD FRAUD. Adios to this lender for sure and our agents know not to ever deal with this under the table kind of people. Where is the integrity?
Laura --- love your new photo --- yes, the agent has to know enough and be smart enough not to listen to those who propose fraud. Thanks for stopping by.
Mama Liz
Jane --- of course, you are sooooooo right --- luckily my agent is smart enough to know fraud when she sees it. Thanks for stopping by.
Mama Liz
Kim --- of course, you are so right --- Luckily, the agent-owner involved was smart like you and did not get involved.
Mama Liz
Andrea --- yes, yes, yes --- you are correct -- at least in my book. I am fortunate that my agent-owner involved in this is smart and she ran the other way.
Mama Liz
Todd --- yes, you are correct -- Luckily, my agent-owner is smart -- she not only would have no part of it, but after she explained all to her client, the client said NO also.
Mama Liz
Janice --- thanks for stopping by and for your nice comment.
Mama Liz
Irene --- yes, yes, yes you are correct and I am so lucky that my agent-owner is a smart cookie and said NO.
Mama Liz
Anna --- I continue to be amazed everyday with this kind of "stuff" --- I try to hard to be sure that my agent-owners know about this and stays away, but you know how difficult it is to get to each of your agents.
Mama Liz
I see you got featured on big board as well as our BananaTude Group. This is an important post - for everyone to read.
Fraud is fraud. The realtor needs to stop it, if the customer doesn't qualify until the home is sold, then wait. The realtor is just as guilty if they participate. If you want to go a step further, contact the lender and his/her boss regarding the issue and notify the state banking department. We need these types of individuals out of the industry. It use to be an honorable profession.
You have to be very careful about who's advice you take in this business, doing the wrong thing can land you in a lot of hot water.
Anna --- thanks for the feature on BananaTude, but I didn't get a feature from the AR gods on this, but on the next post.
Mama Liz
Kyle --- Oh, yes, my broker refused to be any part of this and then the buyer also refused. Thanks for stopping by.
Mama Liz
JL --- yes, you are so right --- thanks for stopping by.
Mama Liz
Hi Liz! You know, I was trying to scroll down quickly to say "NO--don't do it--if you know about it, you're guilty of fraud as well!" I see Todd beat me to it though! Yes, I think your agent AND the buyer are both smart to dump this lender before he brings trouble to them!
Debe --- thanks for stopping by --- yes, this whole scenario smells of"fraud".
Mama Liz
The in house loan officer freeked out when she read this post --- she said, "What if people think it is Residential Mortgage of SC"? I can tell you definitely that this did not involve Residential Mortgage of SC or Beck Hayward - our most trusted loan officer.
Mama Liz
NO, and you wouldn't want to be involved in anything fraudulent!