Article: Lying on a Car Loan Application Is a Bad Idea?

[Anonymous]

Hi all

Lying on a Car Loan Application Is a Bad Idea

I cam across this interesting article on lying in auto loan applications, not that I plan to lie on any of my applications but it seems even some dealers will nudge you into doing it? hmm.. bad idea indeed.

I think lying about a mortgage will definately get you busted since that shows up in your FICO, but if you had a 2000 apartment rent and lied that you share rent with one family member 1000 each, how can the lender ever proove this?

[llecs]

Scary stuff.

In a personal note, I'm in the middle of the mortgage process and had a significant monthly credit obligation (loan) that wasn't reporting at the time on my CR. I volunteered it so they can factor it in and that would further prevent being over-extended. When I volunteered it to the LO, she asked if it was reporting. I said no. She said that she didn't want to hear about it and moved on. The application was generic but asked for all monthly obligations. In essence, she asked me to fudge the figures for the sake of lowering DTI. On top of that, I was giving myself a decent raise after freezing my pay for the past 4 years. She was trying to coach me on what my income should be without raising red flags with the UW.

I applied for a BofA CC once at the branch. I clearly remember telling the branch manager my income down to the dollar. She said that my income needs to increase by $10k if we want to improve the odds of being approved and proceeded to change my income without any acknowledgment from me. Anything for a commission I guess.

[Lel]

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@Anonymous wrote:

Hi all

Lying on a Car Loan Application Is a Bad Idea

I cam across this interesting article on lying in auto loan applications, not that I plan to lie on any of my applications but it seems even some dealers will nudge you into doing it? hmm.. bad idea indeed.

I think lying about a mortgage will definately get you busted since that shows up in your FICO, but if you had a 2000 apartment rent and lied that you share rent with one family member 1000 each, how can the lender ever proove this?

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Falsely stating one's income was once a widespread and completely acceptable practice in the mortgage lending industry.  They called them "stated income" loans, which did not require any documentation of one's actual income.  This tactic helped fuel the run-up in housing prices and is now the cause of many defaults.

With regard to rent, lenders will often request evidence of how much you actually paid (canceled checks or bank statements).  If your rent checks are $1000, then they'll know that you're not paying $2000.  And if your roommate gives you the $1000 that you deposit into your account before paying the full rent, then the lender will ask for an explanation for these large monthly deposits.  So lenders have ways by which they try to verify one's actual expenses.  It's not foolproof, of course, but someone would need the foresight to cover his or her tracks well in advance of his or her mortgage application

[Imhotrodcrazy]

As the old saying goes, if you tell the truth, you don't have to remember what you said.

[llecs]

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@Imhotrodcrazy wrote:

As the old saying goes, if you tell the truth, you don't have to remember what you said.

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I heard that recently. Will Rogers? John Wayne? Off to google.

ETA....Mark Twain.

[Imhotrodcrazy]

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@llecs wrote:

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@Imhotrodcrazy wrote:

As the old saying goes, if you tell the truth, you don't have to remember what you said.

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I heard that recently. Will Rogers? John Wayne? .

ETA....Mark Twain.

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It is a very old saying, I am sure that both have said it at one time or another.  Also, I am damn near as old as both of them, but I'm not dead yet.