 Each property was sold at an inflated price to a "straw purchaser" who applied for a mortgage loan based upon the inflated price.The straw purchasers who participated in these mortgage flips were paid a kick-back out of the excess loan proceeds for the use of their name and credit.The victim-lenders granted the loans based upon numerous false
representations and documents regarding the credit qualifications of the straw purchaser, as well as false representations that the straw purchaser had paid a down payment, would reside in the home, and would be responsible for the loan payment.