There are several areas that are limited to the business side of the transactions - mortgage lenders, loan originators, real estate agents, and appraisers. Some categories can be done solely by non-industry affiliated individuals such as flipping, falsifying loan records and having "holding companies" to increase values. Others categories need an industry accomplice.
• Exclusive use of one appraiser
Increased Commissions/Bonuses - Brokers and Appraisers
• Bonuses paid (outside or at settlement) for fee-based services
• Higher than customary fees
Falsifications on Loan Applications
• Buyers told/explained how to falsify the mortgage application
• Requested to sign blank application
Fake Supporting Loan Documentation
• Requested to sign blank employee or bank forms
• Requested to sign other types of blank forms
Purchase Loans Disguised as RefinanceInvestors-Short Term Investments with Guaranteed Re-Purchase
• Purchase loans that are disguised as refinances requires less documentation/lender scrutiny
• Investors used to flip property prices for fixed percentage
• Multiple "Holding Companies" utilized to increase property values.
But looking at the list, it seems almost impossible that only $1 billion of mortgage fraud occurred during the last ten years. In just our little real estate scam post the amount extracted was over half a million.