Loan "Flipping"

Loan "Flipping"

The process of raising cash periodically through successive cash-out refinancings.

This is a scam initiated by mortgage brokers that victimizes wholesale lenders, with the connivance of borrowers. See Mortgage Scams/Strictly Broker Scams/Successive Refinancings Using Rebate Loans.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.