[In the mid-2010s, an opportunistic scam known as the “Lion” mortgage scam targeted unsuspecting homeowners and borrowers with promises of guaranteed approvals and incredibly low interest rates. The scam involved a shell company posing as a legitimate lender, collecting upfront fees and then disappearing with consumers’ money. Borrowers received fake loan documents and requests for sensitive personal information, only to be ghosted after payment.
### How the Lion scam worked
– **Unsolicited offers:** The scam often began with unsolicited phone calls or emails promising guaranteed mortgage approvals.
– **Upfront fees:** Victims were asked to wire or pay fees before the loan was processed, allegedly for appraisal or insurance.
– **Fake documentation:** Fraudsters sent out official-looking documents and asked for Social Security numbers and bank details.
### Protecting yourself
– **Research the lender:** Verify a mortgage lender’s license with state regulators and read reviews before engaging.
– **Never pay upfront fees:** Legitimate lenders do not charge large fees before processing or disbursing funds.
– **Beware of pressure tactics:** High-pressure sales and requests for confidential details should raise alarms.
### Related resources
– [Mortgage Fraud Index](/fraudindex)
– [Mortgage Fraud Enforcement Index](/mortgagefraudenforcementindex)
– [Fraud Index 121311 Update](/fraudindex121311update)
– [Fraud Index Q1 2012 – 06/25/12](/fraudindex1q2012062512)
– [Mortgage Graveyard](/mortgage-graveyard)
