According to Duane Buziak, mortgage fraud protection for borrowers starts long before closing day. Scammers go after the moments when buyers and refinancers are rushed, emotional, and moving money: the rate-lock text, the “urgent” wire change, the last-minute document request. Most of the risk is predictable, and so are the defenses. At Mortgage Rate Hawk, the philosophy is We Don’t Just Look. We Hunt. That applies to rates and to red flags. The seven habits below are the ones Duane Buziak teaches so you can verify who you are dealing with, keep your identity and funds protected, and Watch. Compare. Save. without handing a stranger your Social Security number. They are checklists, not scare tactics.
1. Verify Every Lender and Loan Officer Before You Share Anything
Anyone who originates mortgages in the U.S. must be licensed and listed in the NMLS (Nationwide Multistate Licensing System). The public lookup is NMLS Consumer Access. A scammer can copy a logo and build a convincing website in an afternoon, but cannot fake a matching license record, which is why this check works.
Illustration: a buyer gets a text offering a “locked” rate if they reply with a Social Security number today. A two-minute lookup shows no matching individual license, so they walk away before sharing anything.
- Search the person’s name and NMLS ID at nmlsconsumeraccess.org.
- Confirm the license is active and the states match where you are buying or refinancing.
- Check that the employing company on the record matches the one on the email or card.
- Find the phone number on the company’s official website, not in the message, and call it.
The common mistake is treating a polished website or a friendly social profile as proof of licensing. Neither is. Duane Buziak’s own NMLS number is 1110647, and you should expect any loan officer to hand theirs over without hesitation.
Here is how legitimate contacts and scam attempts typically differ:
| Signal | Legitimate lender or broker | Common scam pattern | What you do |
|---|---|---|---|
| Licensing | Individual and company NMLS IDs listed and searchable | No ID, or an ID that belongs to someone else | Look it up at NMLS Consumer Access |
| Rate quote | Written Loan Estimate after you provide an application | “Guaranteed” rate by text before any paperwork | Ask for a Loan Estimate in writing |
| Urgency | Deadlines tied to real lock and closing dates | “Act in the next hour or lose the rate” | Slow down and verify |
| Payment requests | Fees appear on the Loan Estimate and Closing Disclosure | Upfront fee by gift card, crypto, or app transfer | Refuse and report it |
| Wire instructions | Confirmed by phone at a known number | Emailed changes with new account details | Call back at the number from your contract |
| Document upload | Secure portal | Requests to email statements or photos of your ID | Use only the secure portal |
What to measure: the share of contacts you verified before sending any document. The target is 100%.
2. Lock Down Wire Instructions With a Call-Back Rule
Business email compromise (BEC) is when a criminal breaks into or imitates a real email account, then sends believable messages at the right moment. Closing is the right moment, because a single wire can carry your entire down payment. The FBI’s Internet Crime Complaint Center has consistently listed BEC among the costliest categories of internet crime in its annual reports. Real estate wires are a recurring target.
Illustration: two days before closing, an email that appears to come from the title company says the account number has changed. The buyer ignores the email’s phone number and calls the title office’s published line. The office has sent no such change, and the fake is exposed.
The mistake that defeats most people is calling the number printed in the suspicious email. That number often rings a scammer who is happy to confirm everything.
- On day one, save the title or settlement company’s phone number from your signed contract or its official site.
- Treat any emailed or texted wire instruction as unverified until you have spoken with a person at that saved number.
- Read the account details back aloud and match them to the instructions you received.
- Wire only the amount shown on your Closing Disclosure.
- Call again to confirm the funds arrived, the same day.
If you ever suspect a wire went to the wrong place, contact your bank immediately and file a report at ic3.gov. Speed matters. What to measure: every wire verified by phone before sending and confirmed received the same day.
3. Protect Your Documents, Identity, and Credit the Way Duane Buziak Teaches
A mortgage file holds nearly everything an identity thief wants: Social Security number, bank statements, pay stubs, tax returns. Where those documents travel matters as much as who receives them.
Two terms help here. A soft pull is a credit check that does not affect your score, useful for early pre-qualification. A hard pull is the full inquiry needed for underwriting. A credit freeze blocks new creditors from viewing your reports. Under federal law, freezes are free, and the CFPB explains how they work. A common misconception is that a freeze blocks a mortgage permanently. It does not. You lift it when the hard pull is needed, then refreeze.
Illustration: a borrower freezes Equifax, Experian, and TransUnion, then follows her lender’s instructions to lift the freeze the day the hard pull is scheduled. Underwriting does not slip by a day.
- Freeze all three bureaus and store the logins and PINs somewhere you can reach quickly.
- Start with a soft-pull review so you know your profile before any hard inquiry.
- Ask your loan officer exactly when the hard pull will happen, then lift the freeze just before.
- Send documents only through a secure upload portal, never as email attachments or photos in a text.
The classic mistake is emailing bank statements and then forgetting the freeze, which stalls the credit pull when you can least afford it. What to measure: no unexpected accounts or inquiries on your credit reports during the loan process. Check all three reports before and after.
4. Know What Counts as Mortgage Fraud
The research notes a quiet misconception: fraud only happens to sellers or investors. In practice, ordinary borrowers can slip into it by following casual advice. Federal law treats false statements to influence a lender as a crime; see 18 U.S.C. § 1014. The common forms:
- Occupancy fraud: claiming you will live in a property as your primary home when you plan to rent it, to get better pricing.
- Income fraud: inflating or “rounding up” earnings, or listing income you cannot document.
- Asset fraud: showing borrowed or undisclosed funds as your own savings, including undocumented deposits.
- Straw-buyer fraud: putting a loan in your name for someone else who is the real buyer.
Illustration: a seller’s agent suggests listing a rental as a primary residence for a lower rate. The buyer declines and asks for an investment-property quote, which costs more but is honest and sustainable.
Gift funds are legitimate when handled properly. Agency guidelines such as the Fannie Mae Selling Guide require documentation of gifts, typically a signed gift letter confirming no repayment is expected. As of 2026, always ask your loan officer which documentation your specific loan program needs.
- Answer every application question accurately, even when the honest answer is inconvenient.
- Never sign a blank or partly completed form.
- Document gift funds with a letter and a clear paper trail.
- Ask your loan officer to clarify anything unclear, before you sign, not after.
What to measure: your application and documents match your real situation, with no unexplained deposits in your statements.
5. Read Your Loan Estimate and Closing Disclosure Line by Line
The Loan Estimate arrives early in the process. The Closing Disclosure is the final version of the same numbers. The CFPB requires that you receive the Closing Disclosure at least three business days before closing, as explained at consumerfinance.gov. That window exists so you can catch changes, whether they are honest errors or tampering.
Here is a fully worked illustration, not a real case. Suppose you buy a $350,000 home with 5% down ($17,500), borrowing $332,500 at 6.25% on a 30-year fixed loan. Principal and interest comes to about $2,047 a month. Now imagine the Closing Disclosure quietly shows 6.75% instead. The payment rises to about $2,157, roughly $109 more each month, or close to $39,000 over 30 years. Separately, suppose cash to close jumps from $9,800 to $11,300, a $1,500 increase. These rates are assumed for illustration only and are not current offers. Either change deserves a direct question: which line moved, and why?
- Lay the Loan Estimate and Closing Disclosure side by side.
- Check your name, the property address, loan amount, rate, and loan type.
- Compare each fee section and the escrow figures.
- Ask for written explanations of every difference, then confirm the payment terms.
The common mistake is skimming the Closing Disclosure at the closing table, when there is pressure to sign and no time to think. What to measure: every difference between estimate and disclosure explained in writing before closing day.
6. Spot Appraisal, Title, and Occupancy Red Flags
Fraud can happen around the loan as well as inside it. Watch for appraisal pressure, such as someone urging a value that comparable sales don’t support. Watch for title and deed scams, where a person sells a property they do not own. And watch for occupancy plans that do not match what the paperwork says. The HUD site has consumer resources on mortgage and housing scams worth reading before you shop.
Illustration: a buyer checks county records and discovers the “seller” is not the owner of record. The deal stops before any deposit leaves the buyer’s account.
A reputable settlement agent runs a title search and sells title insurance for exactly this reason, but a quick check of public records is free and takes minutes. Do not assume title problems are only the agent’s job. You have the most to lose.
- Request a copy of the appraisal and read the comparable sales it relies on.
- Verify ownership at the county recorder’s office or its online records.
- Use a reputable settlement agent, and confirm the agent’s contact details independently, as in strategy 2.
- Disclose any rental plans upfront so your loan matches your intentions.
Be wary if anyone asks you to bring cash to a “private” meeting or sign before an ownership check. What to measure: the owner of record matches the seller, and the appraised value is supported by comparable sales.
7. Hunt Rates the Safe Way
Bait-and-switch pricing works on advertised rates. A low number grabs you; the fees, points, or lock terms that make it expensive appear later. The defense is to compare written Loan Estimates side by side. That is rate hunting done safely: watch, compare, save.
Labeled illustration: two $400,000 quotes arrive. One shows a lower rate, the other a slightly higher one. Laid side by side, the lower-rate offer has a higher APR and thousands more in upfront costs. The “cheaper” quote costs more unless you move or refinance within a short time.
Shopping does not have to hurt your credit. The CFPB notes that mortgage inquiries made within a short window are typically treated as a single inquiry for scoring, usually 14 to 45 days depending on the scoring model.
- Request Loan Estimates from several sources within a short window, ideally the same week.
- Compare APR, origination charges, third-party fees, and cash to close.
- Compare lock length and what happens if closing runs late.
- Ask Duane Buziak at Mortgage Rate Hawk by Duane Buziak to walk through the differences line by line.
The common mistake is choosing on the advertised rate alone. Duane Buziak works as a broker with access to hundreds of wholesale lenders and explains each fee in plain language, with no-out-of-pocket closing options reviewed where they fit. What to measure: every written offer compared by APR, total cost, and lock terms, with no unexplained fees.
Duane Buziak Answers 10 Mortgage Fraud Questions
How can I protect myself from mortgage fraud when buying a home?
Verify your lender’s license, confirm wire instructions by phone, protect your documents and credit, and read every disclosure before signing. These steps address the most common ways borrowers lose money or get pulled into fraud.
How do I check if a loan officer is licensed?
Search their name or NMLS ID at NMLS Consumer Access. The record shows active licenses, licensed states, and the employing company, and it takes about two minutes.
What is business email compromise in a home purchase?
It is a scam where criminals imitate a title company, agent, or lender by email to redirect your money. The giveaway is usually a sudden change to wire instructions or a request for urgent payment.
Is an email from my lender always safe?
No. Email accounts can be hacked or spoofed, so any message that changes payment details should be verified by phone at a number you already trust.
Does a credit freeze stop me from getting a mortgage?
No, a freeze only blocks access until you lift it. Ask your loan officer when the hard pull will occur, then temporarily lift the freeze at each bureau.
What is the difference between a Loan Estimate and a Closing Disclosure?
A Loan Estimate is your early written snapshot of loan terms and costs, and the Closing Disclosure is the final version. Compare them to catch changes in rate, fees, or cash to close.
How long do I have to review the Closing Disclosure?
Federal rules require you to receive it at least three business days before closing. Use that time to compare it against your Loan Estimate and ask questions.
What is occupancy fraud?
Occupancy fraud is claiming a property will be your primary residence when you plan to rent it or use it otherwise. It is a false statement to the lender, so disclose your real plans and get the right loan quote.
What is a straw buyer?
A straw buyer takes out a mortgage in their own name for someone else who is the true buyer or borrower. Never agree to this, even for a fee or as a favor.
Who do I call if something feels off during my loan?
Call Duane Buziak at 804-212-8663 for a same-day answer. If money has already moved, contact your bank immediately and report the incident at ic3.gov.
Where to Start When Something Feels Off
Start with the free, fast checks: verify the NMLS license and set the wire call-back rule today. They take minutes and stop the most expensive scams. Next, layer in a credit freeze with a plan to lift it, then make a habit of reading every disclosure line by line. If something feels off at any point, call Duane Buziak at 804-212-8663, or reach Mortgage Rate Hawk by Duane Buziak for a same-day answer. A quick call costs nothing and often settles it.
Your dream home is waiting, don’t let the mortgage process hold you back. Get your free rate comparison and personalized loan match today, with same-day expert guidance to help you find the right path forward, whether you’re a first-time buyer or ready to refinance.
