From the fraud files

Borrower buys a condo from Seller, whom he happens to be one of his associates. The borrower takes out a first mortgage with Bank A and a second mortgage with the seller.

Eight months later, borrower wants to refinance the mortgage on the seller. But he doesn't have a job, and he knows no one will give him a loan without one. So, he gets the guy who sold him the condo in the first place to act as his "supervisor" on a made up job.

The supervisor tells the loan originator that the borrower makes about $12,000/month. Our borrower gets the refinance, which, of course, pays off the first mortgage to Bank A and the second mortgage with the seller, who fraudently helped him get the refinance in the first place.

Clever, clever.