Employer lieing about a laid off employee to get a home loan.?

I have a employee that was laid off over a month ago. He is applying for a home loan and they are trying to verify his employment here at my company. If I say he is not employed, he will not get the loan. If I lie and say he still is employed I could very well be granting the loan. Are there any implications on my end for helping him out if something comes up later on ?

Employer lieing about a laid off employee to get a home loan.?
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5 Replies to “Employer lieing about a laid off employee to get a home loan.?”

  1. I agree with the “off to jail” answerer and have this to add: this kind of bogus reporting is half of what got this country into this economic mess that we’re in. People falsifying reported income, loan agents pumping people up into thinking they could afford more than they really could. Do not jeopardize your career/family/freedom/reputation to help get someone into a loan that they may or may not be able to afford. What you need to do is to give this former employee a truthful report when someone else calls you for an employment reference. That is the biggest favor you can do. He will have to get the home/job/etc on his own merits and abilities.

  2. YES, YOU knowingly lying to a bank which is sort of like forging a check. This is exactly why the economy is the way it is. I used to be a mortgage processor and it’s insane how verification of employment can make or break a deal. Well guess what, all those deals that were made with supposedly employed people? Are a big chunk of the cause of the mortgage crisis!

  3. he is going to have to show “current” paystubs and probably more than once – don;t lie. How will he be able to pay it if he’s unemployed – he’d just be adding to the foreclosure home oversupply

  4. Perhaps something could come back to you but the chances of that are very slim.

    This happens all the time and if you like the guy I am sure you fell compelled to help him.

    Its a tough call so good luck.

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