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Identify the Fraud Scheme:-There is scenario presented below

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Identify the Fraud Scheme:-There is scenario presented below. Read the scenario and identify the fraud scheme and/or legal violation occurring in the scenario.   share in this discussion the fraud scheme and/or legal violation you think is occurring in that scenario. 

Scenario : Young couple June and Bud really wanted to buy a home, but their debt ratio was too high and they didn’t have enough for a down payment. June’s dad, Jack, decided to help them by applying for an FHA loan himself, with the understanding that June and Bud would make the mortgage payments. Within a year of moving in, they were well behind in their monthly payments, and the lender called Jack. Jack said he had no intention of making the payments, so the lender started foreclosure procedures, and June and Bud moved into Jack’s basement.