What is the main motivation behind vendor cash back fraud?

The main motivation behind vendor cash back fraud is to manipulate mortgage amounts. This type of fraud typically involves a vendor offering cash incentives to home buyers, which are not disclosed to lenders. By doing so, the apparent purchase price of the property is inflated, allowing buyers to secure higher loan amounts based on this artificially increased value. This manipulation not only results in lenders being misled about the true price of the property, but it also creates financial jeopardy for both the buyer and the lender when these inflated values fail to hold up in the market.

In contrast, reducing the total cost to the buyer is not a motivating factor in this type of fraud, as the intent is not to save the buyer money but rather to deceive lenders for profit. Enhancing property visibility may be a legitimate strategy in real estate marketing but does not pertain to the motivations behind fraud. Similarly, disposing of unsold properties would typically involve legitimate sales strategies, not fraudulent practices, since fraud focuses on illicit gains rather than clear transactions.