real estate agent covers seller's bum

A vigilant real estate agent in New York state has concluded what seemed like a never ending quest to make certain her seller could not be accused of colluding to defraud a lender in a FHA mortgage transaction. Facts...the seller assist in the contract exceeded FHA guidelines. This was not noticed until underwriting and the parties were never notified except via the closing instructions which

query: what happens if you get caught with occupancy fraud

Getting caught in mortgage fraud of any kind is serious.  Let's talk about occupancy and why mortgage lenders care about it.  It's all about basic human needs and survival.  When the chips are down and times get tough, you still need a roof over your head.  People tend to protect that roof and let other investments go south.Mortgage lenders and their underwriters rate risk.  They know from