This scenario could be considered fraud because the wholesaler entered into a legal contract with no intent of actually performing.

And agree with you, we need identity verification, criminal records, eviction history, income verIfIcatIon, credit check, etc. it has to be more than just a credit score or something basic like that.

I'm going to talk to my bank next week about these kinds of deals because it seems to me that it's possible to get sued for fraud by the bank if they were to find about I was doing such a deal.

On the other hand, the Texas Fair Housing Act is identical to the Federal Fair Housing Act.  

You just can't acquire the property then turn around and use it as a rental, then acquire another property with the VA Home Loan because that is considered as mortgage fraud. 

Moving out prior to 1 year, or not moving in at all could be construed as mortgage fraud so be careful with that.

I have had a lender tell me to my face they weren’t going to help me commit mortgage fraud when I tried to buy a new primary to rent out my old one.

We have a level of trust, but just so we don't run into any issues down the line with someone withdrawing extra money or fraud situations, how do we split the profits into an account that neither of us can withdraw all of the funds from without approval from the other partner?

So for me, I require that they complete the verification process (Identity, email address, phone number) and I pretty much interview them like what's their purpose of being in the area.3.

If it's mortgage fraud why is it on the HUD-1 and CD?