Let’s get very real here. There are mortgages granted every day, by banks like Wells Fargo for example, that have clauses that the 2nd home property cannot be entered into rental pools and must be owner occupied. Once the mortgage is signed the 2nd home is immediately entered into various rental companies like HomeAway… Lying to the bank – Mortgage Fraud maybe?
There’s an interesting new article out on the celebrated Massachusetts U.S. Bank v. Ibanez case that suggests that the defendant, Antonio Ibanez, was at the center of a property fraud ring. It’s not clear to me that there was anything illegal about Ibanez’s activities, but even if there were, I don’t think it much matters.
The article is by Zachary K. Kimball, who appears to currently be employed by McKinsey. The paper itself seems to have been written while Kimball was a law student at Harvard, but with its genesis when Kimball was a researcher at the Boston Fed. The contribution of the paper is to document the various property dealings of Antonio Ibanez, the defendant in US Bank v. Ibanez. Kimball did some impressive digging into the public property records to discover the various property dealings of Mr. Ibanez. He shows that the property at issue in Ibanez
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