Who can I report FHA loan fraud to? I have contacted our state bank regulatory department, and I have tried to get though to FHA/HUD without any luck. Any other suggestions?

I know you guys aren't able to provide legal advice, but maybe you can offer your opinion. If the fraud involves the lender adding false information to the loan application is my buyer likely to be held responsible? Is there any way I can be held responsible?

If you knew they were KNOWINGLY doing it then yes you and your buyer would be lieing by ommission and going along with it.The docs your buyer signs at closing will state that everything they said and gave is correct and truthful.In reality as long as the buyer makes the payment the investor could care less.It's when a defualt or foreclosure happens and losses add up and they review docs that they will come for both of you.

No legal advice but I would go to another lender and if your buyer can't qualify than work to resolve the issue legally.Make sure that this is fraud and not just a misunderstanding of how this loan works.Being accused of fraud is a very serious accusation and you could be held liable if the allegations wer eproved false.

Have you, or your buyer, told the lender it appears they have made some "false assumptions" and asked that the documents be corrected?

Remember also that the buyer resigns the loan application at closing. This could put him in a precarious position if he unknowingly signs off on the wrong data.

Now that you know about it you will be guilty too.

Seattlelegal -- Report it to your local FBI office.

Why? They have made loan fraud on federal loans a priority. They will be in your phone book in the federal government section. Someone in that office is handling loan fraud issues. At the very least, they will have a contact at FHA.

Write to your broker about your concerns and maybe even fax it to your own office and keep the fax confirmation as soon as possible. A number of local real estate agents have been imprisoned for their alleged involvement in fraudulent transactions.

Like Steve said, FBI!

Try the Attorney General for your state.

FBI, at the very least they can point you in the right direction and will log your call. If something comes from it, it al least shows that you tried to report what you feel is fraud.

I think the first step is to go to the lender and make sure that it isn't a typo or a misunderstanding. If he winks and says that's how you get a loan like this, then you report him.

It just seems a little drastic to call the FBI first.