[David] Mr. Kittle, our good friend Bob Simpson staying with you at your house . When Bob’s around, you’re gonna talk about mortgage fraud and looking about different things. There was an interesting thing that came up. The amount of mortgage fraud that’s showing up on again we stayed nonpartisan here as much as we can. But it’s real interesting to see some things where there is mortgage fraud showing up within one particular party, more so than others.
[Kittle] Leticia James, a New York Attorney General. And, I think Bill can opine on this a little bit better. He had some good comments on our pre-call about her, but then you’ve got Adam Schiff. Alright. That’s, legit
[David] It’s legitimate mortgage fraud. Yeah. Explain what that was. If you could give us a little background for those that haven’t seen the stories, David.
[Kittle] Yeah. So look Adam Schiff he votes in California, says that’s where he lives. And, but yet he has a house that he lists as his primary residence on his mortgage application in Maryland. Okay? Now, if anybody on this podcast or listening did that, then you’d be up for prosecution in some form, right? So it’ll be interesting to see if anything happens there. Leticia James. Bill opine here whenever you want, buddy. I think she listed her dad or her grandfather as a spouse on, as an, on an owner occupied property that she clearly doesn’t live in and…
[David] And jump in, bill.
[Bill] Sorry. Sorry and her case is more interesting because her employment contract has a residency requirement in New York City and, excuse me, and yet she has a mortgage application. I don’t remember what property was listing. It’s a primary resident with some other things on top of it, but…
[KIttle] I think it’s New Jersey.
[David] Jersey, yeah. New Jersey. Yeah. Yeah. And she also, she has some rental units that are like a slumlord. There’s all kinds of stuff popping up. Here’s what the deal is, folks. We have got a call, we’ve gotta call out mortgage fraud and there’s even some mortgage fraud that’s showing up. For people that are industry participants, I think there should be double damages. If you’re in the mortgage industry and you’re doing mortgage fraud, we should be held to a higher standard. Just like anyone at any profession, they should be held to a higher standard. If they violate the code of ethics for their industry and we’re seeing too much mortgage fraud, I think, Bob, I would encourage everyone to go back and listen to Bob Simpson’s. We probably need to put a link to that post in our show notes today, so you go back and listen to it. There’s just way too much of that happening. It’s an on, it’s an on rise. I. It’s on an increase.
[Alice] Wouldn’t it be common for Congress people? So couldn’t it be very rampant through both of them, that people in Congress and the Senate have a residence in DC and a residence in their resident in their district. In their district. Exactly. And so if someone were to go through an audit and go, you only get one primary resident, where are you? 51% of the year. That’s a yes or no question. Yeah.
[David] Or address it where we can make exceptions to it and exceptions to the rule for people that are doing, that are working and spending a lot of time in one community in another. Is it possible to have dual? I think residency, yeah.
[Kittle] Completely different scenarios here. Schiff is one thing because he’s going back and forth all the time. Lat James is more blatant to me, right? Yes, it is. Yeah. Like clearly. Both are right.
[Bill] And in the Adam Schiff scenario. So one of the things that is stated clearly in the Fannie Seller Guide is in their definition of a second home. It’s a combination of the typical vacation home, but it can also be in an area where you typically conduct is. So for example, if you’ve got a job where you’re traveling a significant amount of time to a certain area, you can buy a property there and call it a second home versus having to say it’s an because you’ve got legitimate business relationship.
[Alice] Yeah, we all know the why, right? They want the lower rate and they want the easier requirements. Yeah, the different algorithm and automated underwriting, there’s a lot of reasons that could be and that why someone wants to what they, a little white lie. There’s no such thing. If you don’t tell the truth, then it’s misrepresentation and it’s a violation of eligibility requirements. It’s black and white.
[Kittle] Bingo!
[Davod] Yep. Yeah. We’ve got to be dealing with this more. I think. Here’s one thing. Anyone listening to this and say I’ve got a loan right now for my representative, whether it be state or or federal and I’m looking at this issue and I’m telling you, look at it hard and hold the line on it. They said yeah, but I could lose the loan. This is where the problem is. We get more concerned about holding onto one loan than following the ethics. That’s, that are required of all of us. If we’re a mortgage lender, follow the code. Let that other loan, let that loan go. If someone is putting pressure on you, you say, yeah, but I don’t wanna be able to call up this senator and be able to, or this representative and have some leverage in DC as their lender. Okay. And then you’re compromising yourself. And I would say that’s not a good thing.
[David] Slippery slope. Mr. Kittle, thanks for bringing that up. Great point. So I kiddle, are we gonna come up with, Kittle kibbitz or something like that, saying have Bill’s, bullets, and, we have Marc’s rant. So are you gonna come up with something?
[Kittle] Yeah, I will. But you gotta gimme, that was a blindside this morning. So next Monday I’ll you’ll have it.
[David] Yeah, I got a suggestion. You’ve been known to have shots at your house ’cause you got one of the coolest bars in there. So it’s a kittle shots that we may call it that. We may, maybe that one. Maybe that’s it.
[Kittle] I’m not the only person on here that probably has a bar in this house.
[David] No. Probably not. Probably not. Anyway, good stuff you guys.
David G. Kittle, CMB is a highly respected leader in the mortgage industry, with over 45 years of experience. He is the Co-Founder and Chairman of The Mortgage Collaborative (TMC), a mortgage lending cooperative providing members with access to resources and tools to improve their business operations.
Kittle began his mortgage banking career with American Fletcher Mortgage Company as a top-producing loan officer in 1978 moving to the management side in 1986 with Southmark Mortgage. He opened Associates Mortgage Group, the first of his three lending companies in 1994.
Kittle served as MORPAC Chairman for MBA, from 2004-2006. He is past President of both the Louisville and Kentucky Mortgage Bankers Associations, as well as leading the industry through its most tumultuous period as Chairman of the Mortgage Bankers Association, Washington DC in 2009. Kittle has testified before congress 14 times.
Kittle has been a driving force behind the growth and success of TMC, working to bring together mortgage lenders from across the country to share best practices and collaborate on key industry issues. Kittle has also been a vocal advocate for innovation and technology adoption in the mortgage industry, urging lenders to embrace new tools and strategies to improve their operations and better serve their customers.
Kittle is a frequent speaker at industry events and conferences, sharing his expertise on a variety of topics related to mortgage lending.
He resides in Louisville, Kentucky, he has four children and two grandchildren.