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James’s situation deepens with the complexities surrounding her claim of multiple owner-occupied properties. According to guidelines from Fannie Mae and Freddie Mac, while individuals can have multiple owner-occupied properties, they must occupy each property for at least 12 months before vacating it. If James engaged in what appears to be a systematic approach to misclassify properties and take advantage of owner-occupied benefits, the repercussions could be dire.
Moreover, the banker pointed out that James refinanced one of her properties through the TARP program, which was established post-2008 financial crisis to support homeowners. Allegations suggest that she may have obtained a significantly lower interest rate despite an income level much higher than the average borrower.