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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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.
DSCR Loans Are For Investors Only
- DSCR loans explicitly prohibit owner occupancy and underwrite based on property cash flow, not borrower income.
- Using a DSCR as a primary misaligns underwriting intent and creates occupancy fraud risk.
Always Disclose Source Of Funds
- Disclose borrowed down payments and unusual funds; lenders require transparency about the source of funds.
- Never let advice from fringe schemes recommend withholding information from your lender.