FAQ's General

Do not report suspected mortgage fraud to GREFPAC. GREFPAC is an educational organization; it does not investigate or gives legal advice or opinions. Do not send files or information to GREFPAC for review.

What is mortgage fraud?
Mortgage fraud is a scheme with the intent to obtain mortgage loan proceeds using deliberate misstatements(s), misrepresentation(s), or omission(s) which are relied upon by a mortgage lender, borrower, or any other party to the mortgage lending process. In "plain language," mortgage fraud is a scheme to obtain a loan the lender would not have made if it had known the truth. Mortgage fraud is a crime under both Georgia and federal laws. Other states are enacting statutes which make mortgage fraud a specific crime in their states.

What is the difference between legal and illegal flipping?
"Flipping" can be legal if all parties to the transaction are fully aware of all the details of both transactions. There can be no undisclosed information. You cannot use the funds from one transaction to fund the next deal at the table. The second transaction should be supported with an appraisal that shows all of the renovations being done or supporting reasons for an increased value from one deal to the next. There should be no third party payouts or sales concessions without everyone's knowledge. Normally, several months elapse before the second transaction closes to allow time for renovations.

Where I can get a glossary of helpful terms about fraud and the mortgage industry?
Please click here for a list of terms and definitions that are relevant to the mortgage industry.

Who do I contact to have a GREFPAC member speak to my community about mortgage fraud?
Please e-mail us at [email protected] the date, time, place, your event, your organization, and your contact information. We will be in touch.

Who is GREFPAC's media contact?
Therese G. Franzén, Esq.
Franzén and Salzano, PC
40 Technology Parkway South Suite 202
Norcross, Georgia 30092-2906
[email protected]