Kelly’s Korner: Sending False Records to Lender
Q. What are some of the repercussions of sending false payroll records and false 1099s to lenders?
A. Lenders ask for proof of income to verify the customers ability to repay the loan. Any misrepresentation of the customer, documentation, or equipment on the vehicle can be viewed as bank fraud. When interstate lenders are involved, the activity may be a violation of federal statutes. False information places the contract in an unconditional guarantee status and may prompt the lender to audit all of your outstanding loans for discrepancies.
No matter how you view the situation, honesty is always the best policy. Lenders are in the business of lending money. They want to make loans. That is how they generate revenue. All they ask from us is that we present the deal, the customer, and the vehicle truthfully. If the presentation meets their guidelines, they will make it happen for us.
Do lenders stretch? Yes, they do when it makes sense.
Remember that your reputation precedes you in many arenas. How do you want to be viewed by lenders and your peers in the industry?