In 2006, there were 818 cases of mortgage fraud, with 213 indictments, 204 convictions, $388.9 million in restitution and $1.4 million recovered. In 2007, as the real estate industry fell into an ever-growing slump and mortgages became increasingly more difficult to obtain and maintain, the situation worsened.
On May 22 2008, the Federal Bureau of Investigations [...]
In 2006, there were 818 cases of mortgage fraud, with 213 indictments, 204 convictions, $388.9 million in restitution and $1.4 million recovered. In 2007, as the real estate industry fell into an ever-growing slump and mortgages became increasingly more difficult to obtain and maintain, the situation worsened.
On May 22 2008, the Federal Bureau of Investigations (FBI) reported it had investigated 1,204 mortgage fraud cases in the last fiscal year, which ended September 30, 2007. Through these pursuits, the Bureau was able to incur 321 indictments and $595.5 million in restitution, and recover $22 million. Those numbers will likely go up, as many investigations are still under way.
It is nice to imagine that when a country, an economy and a market experience a down time, so does everyone else. But that’s not the case for scam artists. They take advantage of the hard times, playing on prospective patsies’ desperation and need. They find victims easily as everyone, including you, likes to believe no deal is too good to be true and is quickly taken.
You must be on the lookout for fraud in your real estate dealings. Watch for misrepresentation of income/assets, forged documents, inflated appraisals and misrepresentation of a borrower’s assets. Don’t allow the frequency of fraud to rise yet again in 2009. Go to the respectable lenders and real estate professionals. They are just as if not more plentiful than the con artists waiting to disappear with your savings. They will help you complete your transaction, whether its securing a mortgage on your new home in Lost Creek or listing your property in Westfield so as to move downtown, legally, safely and smartly. You can find the best real estate agents right here, to help you wade through the muck left by the scammers.
Back in April of 2007, Inman News reported a 42% increase in suspected mortgage fraud rates nationwide over 2006. Well, the trend seems to be escalating, as the FBI warns in a report out recently. The Bureau warns that the pace seems to be quickening, given figures for the first half of fiscal year 2008. [...]
Back in April of 2007, Inman News reported a 42% increase in suspected mortgage fraud rates nationwide over 2006. Well, the trend seems to be escalating, as the FBI warns in a report out recently. The Bureau warns that the pace seems to be quickening, given figures for the first half of fiscal year 2008. The figures include losses from the sub-prime mortgage fiasco.
Mortgage fraud includes inflating income or assets, forged documents, misrepresenting intention to occupy the property and exaggerated appraisals. The FBI report warns of increases in fraud, probably due in part to the depressed real estate market, opening the door for perpetrators of fraud. The FBI also warned of an increase in identity theft mainly targeting people with good credit ratings.
In March, ABC News reported on mortgage rescue scams, where con artists purport to help cash strapped home owners pay off their mortgages, only to abscond with the fee they charge, leaving the home owner more strapped than ever and facing foreclosure. The technology of today unfortunately adds to this because it allows easier access to personal information for identity thieves. When home owners submit information to get a home equity loan or line of credit, thieves steal the information and send the financial institution a fax, requesting them to transfer the funds elsewhere.
The FBI bases its gloomy predictions on an increase in fraud complaints, saying they “could be headed for 70,000″ suspicious activity reports. The higher rate of complaints enforces FBI director Robert Mueller’s warning that “as housing prices continue to fall, more financial misdeeds will no doubt come to light.”
The FBI is currently investigating over 1,300 cases of mortgage fraud and 19 investigations into subprime lending cases.
