Originally posted by @Jon Vert:I'm buying a house in Los Angeles which has a garage that was converted to a guesthouse (i.e. it has nice finished floors, no garage door, a bathroom with toilet/sink/shower and kitchenette with sink/electric stovetop).A friend of mine bought a house in Lakewood (CA) that seems identical to yours except it doesn't have any kitchen/cooking items, and I'm told it was permitted years ago as a "rec room".

@Jerry About 2 years ago I went through an identical scenario with one of my condo units.The short story is it depends on your bylaws and the circumstances.In my case, my coverage and the HOA coverage happened to be with the same company. 

@Donald Santossiohttps://www.consumerfinance.gov/about-us/newsroom/cfpb-files-suit-against-loan-doctor-edgar-radjabli-deceptive-acts-practices/#:~:text=The%20Bureau%20alleges%20that%20Loan,against%20deceptive%20acts%20or%20practices.Looks like it was nothing close to a CD account and more likely a total fraud.

This is fraud!

Mario came to us a year and a half ago with what appeared to be a mutually beneficial business deal that would benefit both himself and us, but it really proved to be a giant Fraud and a sham of a transaction.

As a CFE, anytime I hear about a fraud it really irks me. 

The mob maintains power through a massive election fraud operation (aka getting out the vote), which some estimates put at 7% of the total vote in Illinois. 

As long as the bank gets it's money they do not care but it is mortgage fraud and a small risk on the investors part. 

I guess I was mainly worried about the typical 6 months to a year they require but yes everything is nearly identical just switching companies. 

Is this mortgage fraud?