Moody's: Bank statement loans carry heightened risk of income fraud; short-term loans most susceptible
New York, November 30, 2016-- Mortgage programs that use bank statements and CPA letters to verify borrower income carry more risks than typical mortgages, Moody's Investors Service says in a new report. These include a heightened risk of income fraud, with shorter-term loans particularly susceptible. "Bank statement loans have a higher risk of income fraud than traditionally underwritten loans," says Moody's analyst, Lima Ekram.
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