My parents have been at the same bank for decades and stop in once in a while to see how things are (old-school). Recently the manager recommended that they open a home equity line of credit as a way to prevent mortgage fraud. He said that there are scammers who find elderly people with homes that are paid off then come up with fake documents to open a loan against the home and steal the money leaving the real owners on the hook for a loan they had no idea existed.
So he recommended opening a home equity line of credit as a way to prevent anyone else from obtaining a loan against their house. And they did. Does this sound right? If someone targeted my folks and had the right information and fake documents couldn't they just as easily steal using the line of credit? Also I thought banks now do far more diligence on loans than even ten years ago. Even for regular people trying to get a mortgage requires a lot of proof and documentation of who you are, where you work, the title, insurance, etc.