In some cases, the agent in the straw purchase may receive money or recompense from the ultimate possessor.
Obtaining loans through a straw buyer is legal except when the agent and ultimate user of the funds defraud the lender or foreseeable ultimate lender, such as by signing false mortgage documents designed to be mingled with other mortgages and securitized, or when the loan terms expressly prohibit use of an agent to obtain funds.
In England and Wales, buying alcohol on behalf of a person under 18 is a summary offence under section 149 of the Licensing Act 2003, punishable by an unlimited fine (level 5 on the standard scale).
[6] In United States v. Quintero-Lopez, two men were charged with locating eight straw purchasers for homes and helping the straw purchasers falsify pay history documents in order to obtain $8.3 million in mortgage loans.
[7] Straw or nominee purchases of mortgage loans are legal when intent to defraud is not present.