Mortgage Fraud: The Worst Crime You've Never Heard Of  - and Why You'll Soon Hear More of These Type of Foreclosure Bailout Horror Stories.  The FBI describes Mortgage Fraud as the fastest growing white-collar crime, a threat significantly exceeding the S & L Crisis.  We need to know how we can identify it, understand the consequences of this crime, protect ourselves from it, report it, and prosecute it.  As Mrs. Hanneman wrote, any false statement made to a lender or false document presented or prepared, such as a purchase agreement that specifies the seller's lender is not to know about the "sale" is Mortgage Fraud, 18 U.S.C. 1014.  Most of the fraud is Occupancy Fraud, which is claiming on the loan application what is really an investment property as a primary or second home to avoid the 1 to 2% point surcharge lenders charge for these riskier investor loans, or did not have the required down payment.  The result is the demand for real estate was manipulated as a buyer was created.  That lie presents the illusion of increasing demand leading to rising property values and deceives lenders and appraisers about value trends in the neighborhoods where the Mortgage Fraud takes place.  According to the Prieston Group, three out of four Mortgage Fraud claims involve investors involved in Occupancy Fraud.  Once a nuisance to a handful of lenders, these economic terrorists have put innocent homeowners on the hook for overpriced houses and pushed up interest rates for all home loans.  Brian Cohane, co-head of residential and asset-backed bond trading at investment bank UBS, that trades billions of dollars of mortgage securities daily, said, "This (secondary) market is key for investors.  The integrity of that market is very, very important to those investors."  As a result, lenders and the authorities have turned their attention to regular borrowers who are often prompted into falsifying their applications or writing fraud into a purchase agreement by real estate agents or loan officers who tell them it's OK because "everybody does it."  However, fraud is fraud.  The parties are now co-conspirators.  It doesn't matter who is committing it or why, severe penalties can and increasingly do apply.  Making false or misleading statements on a mortgage application or providing false documents or writing fraud into a purchase agreement is a federal crime among other crimes and a form of personal and financial suicide.  You will do hard time as it involves several federal felonies like mail fraud, license violations, state felonies, and the IRS on you for money laundering.  Did you know sending a mortgage payment through the US Mail or bank wire for loans with misrepresentation(s) is Mail and Wire Fraud, more Federal felonies?  Back on the outside, your credit history will contain a financially devastating very large black mark for years after you are set free.  You will never be able to borrow money from regulated lenders again as you're on their Exclusionary List which Freddie Mac requires all lenders check theirs and instead be relegated to the knee-cap busting interest rates of loan-sharks.  Nor will you be able to ever hold a real estate related or financing license or work in any real estate or financing related business.  It's not a pretty picture.  As soon as a lender discovers a fake statement, it is required to file a SAR (Suspicious Activity Report) with the FBI; it can call the loan balance due, seize the property, and seek charges that could rain you with fines, punitive damages and jail.  There doesn't even have to be a loss!  The IRS issued a letter that it treats any income or profit off it as Money Laundering.  So for example one lied anywhere on their loan application or wrote fraud into the purchase agreement then flipped the property, which the IRS is auditing these flips, the IRS said in Dec 2003, no no, that's money laundering and you lose everything.

Mortgage Fraud spawned a dangerous housing bubble burst that has ruined households and neighborhoods as overvalued property falsely inflates nearby home values while also raising property taxes.  When the scam is uncovered, homeowners default, or both, values just as quickly plummet leaving other owners with over-valued homes and upside down mortgages -- conditions that worsen the housing bust.  Investigators for the FBI, state Mortgage Lending Division and local law enforcement say discoveries of mortgage fraud will continue to increase as foreclosures, sting operations and the fraudsters being turned in increasingly give evidence that borrowers lied on their loan applications or their purchase agreements.  Some of the $450 billion in home equity that homeowners cashed out during the 2001-'04 mortgage refinancing boom was based on exaggerated home values that came from mortgage fraud.  Who pays for that part that goes into foreclosure?  Initially it's the lender, who then spreads it back in higher interest rates.  Housing is a more important part of our economy than it's ever been, and people's and our country's fortunes are tied to mortgaged properties.  Eventually, as this costly cancer increasingly spreads, there will be a bailout like the S & L Crisis, but of a higher amount, much higher, which is why the IRS has categorized perpetuators of Mortgage Fraud as Economic Terrorists.  Honest Realtors and loan officers cannot compete against these Fraudsters.  In October 2005, Realtor.com had an article where the FBI requested, "Realtors turn into the FBI the bad apples in their industry involved in mortgage fraud."  James H. (Chip Burris, JR., deputy assistant director of the FBI Criminal Division's National Crime's Branch said "Profit schemes account for roughly 80% of all cases and typically involve occupancy fraud . . . real estate salespeople are usually involved.  Help from brokers and salespeople is essential."  Much of the law breaking is well known but is not openly discussed making Mortgage Fraud a dirty and very scary secret.  It touches those who know it's occurring and those who don't even suspect it.  If you're thinking about doing it, don't.  If you've done it, it's just a matter of time before you're caught.  If someone's asked you to participate in it, don't, file a police report, and turn them into the local FBI office.  If they have a real estate license or mortgage license, turn them in to the NV Mortgage Division or NV Real Estate Division and Reno-Sparks Board of Realtors.  If you know someone's who's done it, do what the FBI has asked in numerous press, turn in these economic terrorists!

NRS 645 governs Nevada real estate licensees

NRS 645.3205  Dealing with party to real estate transaction in manner which is deceitful, fraudulent or dishonest prohibited.  A licensee shall not deal with any party to a real estate transaction in a manner which is deceitful, fraudulent or dishonest.

NRS 645.635  Additional grounds for disciplinary action: Unprofessional and improper conduct relating to real estate transactions.  The Commission may take action pursuant to NRS 645.630 against any person subject to that section who is guilty of:

•5.      Representing to any lender, guaranteeing agency or any other interested party, verbally or through the preparation of false documents, an amount in excess of the actual sale price of the real estate or terms differing from those actually agreed upon.

NAC 645.605  Considerations in determining certain misconduct by licensee. (NRS 645.050, 645.190, 645.633)  In determining whether a licensee has been guilty of gross negligence or incompetence under paragraph (h) of subsection 1 of NRS 645.633 or conduct which constitutes deceitful, fraudulent or dishonest dealing under paragraph (i) of that subsection, the Commission will consider, among other things, whether the licensee:

     1.  Has done his utmost to protect the public against fraud, misrepresentation or unethical practices related to real estate or time shares.

     2.  Has ascertained all pertinent facts concerning any time share or property for which he accepts an agency.

     6.  Has breached his obligation of absolute fidelity to his principal's interest or his obligation to deal fairly with all parties to a real estate transaction.

     9.  Understands and properly applies federal and state statutes relating to the protection of consumers.

     10.  Has acquired knowledge of all material facts that are reasonably ascertainable and are of customary or express concern and has conveyed that knowledge to the parties to the real estate transaction.

Taken from the REALTOR® Code of Ethics:

The term REALTOR® has come to connote competency, fairness, and high integrity resulting from adherence to a lofty ideal of moral conduct in business relations. No inducement of profit and no instruction from clients ever can justify departure from this ideal.  In the interpretation of this obligation, REALTORS® can take no safer guide than that which has been handed down through the centuries, embodied in the Golden Rule, "Whatsoever ye would that others should do to you, do ye even so to them."

Article 1

When representing a buyer, seller, landlord, tenant, or other client as an agent, REALTORS® pledge themselves to protect and promote the interests of their client. This obligation to the client is primary, but it does not relieve REALTORS® of their obligation to treat all parties honestly. When serving a buyer, seller, landlord, tenant or other party in a non-agency capacity, REALTORS® remain obligated to treat all parties honestly.

Article 2

REALTORS® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction.

Article 9

REALTORS®, for the protection of all parties, shall assure whenever possible that all agreements related to real estate transactions including, but not limited to, listing and representation agreements, purchase contracts, and leases are in writing in clear and understandable language expressing the specific terms, conditions, obligations and commitments of the parties. A copy of each agreement shall be furnished to each party to such agreements upon their signing or initialing.

Check out this web site:

 http://certifiableprincess.blogspot.com/2006/10/lions-and-tigers-and-sharksoh-my.html

I found this info on another Mortgge Fraud site.  It's good info.  I wish all the real estate agents practiced this stuff as they are supposed to per their licenses and vaunted Code of Ethics.

Don't ask me or my Seller to commit mortgage fraud. It ain't happening.

As a listing Broker, I, Broker Bryant, promise the following:

All of my listings will be priced correctly.
All of my listings will be clean and easy to show.
I will get you in any of my listings with last minute notice.
I will return your phone call within 1 hour, 7 days a week, 8am to 8pm.
All offers will be presented in a timely and professional manner.
I will never lose my cool and will always talk with you respectfully.
I will do every thing in my power to ensure we have a successful closing.
My Sellers are educated and will not be difficult to deal with.
Now folks, for making these promises, this is what I ask of you:

Speak plainly and clearly so I can understand you.
Treat my Sellers and their property with respect.
Do not try to negotiate with me, it's not my property.
Do not try to negotiate with my Sellers at the showing.
Do not knock on my Seller's door and tell them you have been trying to reach me. They'll know you are a liar.
Please call and cancel if you can't make an appointment.
Do not attempt to enter my listings without calling first.
Leave a return phone number when you leave a message.
Please call if you can't get the key back in the lock box, don't just leave.
Write all offers so I can read them.
Don't waste your time telling me how qualified your Buyer is. Put it in writing.
Don't send me a 30 page inspection report and expect the repairs to be done. Put it in an addendum.

Folks, what we do is not brain surgery but it does require some level of knowledge, common sense and professionalism. If you won't or can't do these things then do us all a favor and get out of the business. You won't be missed.

2007 is the year that I will be reporting all misconducts to your Brokers. Any attempts at mortgage fraud will be reported to the proper authorities. If you don't play by the rules, I will place your license in jeopardy. If you do play by the rules, I will do everything I can to make your job easier. If you don't understand something, ask me. I will help you to be a success.

Pretty straight forward, don't you think? All of us need to step it up a notch. We need to give the consumer a reason to work with us. I value my profession and I take it very seriously. Shouldn't you?

I will also never use Prudential Nevada Realty.  I read NV real estate licensee Keith Gledhill's court documents in Reno Justice and District courts.  Wow.  Another quite dirty and sordid collection of evidence of several crimes, license violations and ethics' violations by another Realtor.  Mortgage fraud, admission of bribes offered, threats, blackmail, perjury, corruption of an employee at the NV Mortgage Div who then covered up the misdeeds. Why aren't these criminal Realtors and their brokers and this corrputed employees in jail?  Why do they still have real estate licenses?  What is wrong with the NV RE Division with their cover up?  Where is the Reno Board of Realtors in all this stuff?  Why are the other brokers allowing Prudential, and Remcor, to get away with this sort of garbage?  What is wrong with Judges Salcedo and Elliott?  How could Elliott forget his conflict of interest when his wife is the big mucky muck at the Wells Fargo office where Gledhill first offered the bribes to do his fraudulent loans for his wife and he, and his clients?  Where is the Reno media?  Where is the Reno office of the FBI?  How come B of A, Wells Fargo, First Horizon, Washington Mutual and CTX haven't called due these fraudlent loans?  Where is HUD in all this?  Where is Prudential corporate in CA in all this?  Where are the owners and managers of the title companies in all this?

Has anyone stepped forward to help the victums of all this?  Where are the Hanneman's today, besides out a few murdered pets and their home?

What happens when I didn't know then and then I later find my name on these type of blogs?  Hey, Gledhill and his wife introduced us to the whole scheme.  We didn't know it was mortgage fraud.  Gledhills told us what to do, what to say, that they would manage the Reno properties and we would make a fortune in a very short time.  We didn't know until later when the Gledhills sold us out.  His broker was just as big a crook as them, that Valerie Mapes.  They are State of Nevada licensed.  They were supposed to be protecting us.  If what the Gledhills told us to do is now so bad, how come the Reno FBI, State of Nevada Real Estate Divvision and Attorney General haven't tossed the Gledhills and Mapes into jail for leaving us with a property he sold us with a fraudulent second home rider on it now in a Reno market where it's worth less than what Gledhill sold it to us for?  How come that Reno Association of Realtors hasn't excommunicated Gledhill and Mapes?  How come that Reno Judge Elliott let Gledhill walk?  How come the Gledhills succussfully used us and others to just drive the Reno home values up, told everyone he had multiple offers when he didn't, got sellers to cancel listings and then he got both sides telling his sellers and buyers he was saving them money.  How come the Gledhills were allowed to managie ours and these other's Reno properties with no Nevada Management Permit?  Then the Gledhill's sold out on Britannia leaving the rest of us holding only the smoke of rapidly evaporating equity.

Occupancy Fraud
When investors lie by claiming that they will live in an investment property as their primary residence or second home in order to acquire better terms for their loans, then they are breaking the law. I didn't realize it but the reason for higher mortgage rates for investment properties is to protect lenders from the greater risks inherent in the business of lending to investors rather than primary or secondary home buyers.

More such types can be found here and here. Also, this page from the FBI about "Operation Quick Flip" discusses how the government is taking mortgage fraud more seriously. Straight from the FBI is this definition of mortgage fraud:

Mortgage Fraud is one of the fastest growing white collar crimes in the United States. Mortgage Fraud is defined as a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan.

In June of 2005 we entered into a construction/lot finance loan with Placer Equity Loans that was cross collateralized on our primary residence. $330,000.00 was released to buy a piece of property that we were going to build a primary residence on for a $415,000.00 construction loan. This was a private money loan. In October of 2006 our lender started foreclosure proceedings on us for one 30 day late. It cost us $35,000.00 plus a third on our house to stop him. This was arranged by our lender, our original broker,Don Denne of Family Funding, and a new third party lender named Joseph Henao. During this 16 month period we had our house listed for sale, as agreed, to pay the original $330,000.00 advance on the property.In march of 2007 our lender again started foreclosure proceedings. This time he told us to contact Vision Lending of Newport Beach and Trey Dewey. We did, and were assured of being able to get out of this mess. Time went by, and little by little we were told it was hopeless.eventually we lost everything to our original lender. There is much, much more in detail, and we believe we have proof that all three conspired to obtain our properties, both of which had substantial equity.Interestingly, Placer Equity Loans bought out our loan from their private lender sometime before the second filing of default.

  hopesomeone can help.

With our home values dropping 2% a month, I have found myself swallowed up by the greedy fraud leviathan.  As part of that the greedy fraud leviathan yes, Remcor Realty is a company whose Broker and agents ought to be in prison for the rest of their lives, along with their co-conspirators.  For years Remcor's taught real estate classes at the real estate board.  Mortgage and real estate fraud was regularly taught in these classes.  This clause Allan Zane/Remcor wrote into the Hanneman's contract, that "the lender is not to be told" is common practice.  It's known as a wrap-around mortgage.  And it is illegal and unethical.  Remcor, Magi Bird and Remcor's agents proudly don't care about illegal and unethical.  They very self-satisfiedly teach "that anything goes as the odds of getting caught are slim to none, and when caught, no one does anything about it anyway."

Something Prudential Nevada' Realty's Valerie Mapes, Michael Reynolds, Keith W. Gledhill, and way too many others whole-heartedly embraced and arrogantly echoed.

By "no one" Remcor Realty means the Board, MLS, the Real Estate Division, the Mortgage Lending Division, the police, the Washoe County Sheriff, the District Attorney, the Attorney General, investigators, the judges - both state and Federal, the Federal attorneys, the IRS, and the FBI.  The thought is willful ignorance, incompetence and corruption - they took a bribe.

Escrow officers/managers know wrap-around mortgages are illegal and unethical.  Title officers/managers know wrap-around mortgages are illegal and unethical.  Loan/Note Servicers, like local Evergreen, know wrap-around mortgages are illegal and unethical. Real estate agents know wrap-around mortgages are illegal and unethical.  Loan officers/managers know wrap-a-round mortgages are illegal and unethical.  The Real Estate Division and Mortgage Lending Division know wrap-around mortgages are illegal and unethical. TMCC real estate instructor and lawyer Ben C. Scheible knows wrap-around mortgages are illegal and unethical.  Real estate instructors and lawyers know wrap-around mortgages are illegal and unethical.  Accountants and tax preparers know wrap-around mortgages are illegal and unethical. Investigators know wrap--round mortgages are illegal and unethical.  Law enforcement knows wrap-around mortgages are illegal and unethical.  Yet, too many either do wrap-around mortgages, are involved in or with them (criminal conspiracy - RICO), and/or teach them.

Not everything Remcor taught was/is illegal and unethical.  Another idea Remcor taught was to always file your own Prophylactic Deed of Trust against your property(s).  Their reasons for doing so were two.  One was to prevent a version of Identity Theft where the fraudster sold or refinanced your real property out from under you.  By filing your Prophylactic Deed of Trust that means that escrow would send you its Beneficiary Statement when a conveyance or refinance was happening.  That is a very big and important notification if a conveyance or refinance was happening if you hadn't known of and approved of either.  Conveyance includes these fraudulent foreclosure notices written here about, these notices from a party with no authority to foreclose.

Title/escrow knew about these and once a Prophylactic Deed of Trust was identified as a Prophylactic Deed of Trust, title/escrow just routinely required the Prophylactic Deed of Trust be removed at close of escrow.  So Prophylactic Deed of Trust's Deed of Reconveyance was routinely filed with the other Deed of Reconveyances, followed by the new Deed(s) of Trust, often including a new Prophylactic Deed of Trust.

The other version was/is of course the illegal and unethical wrap-around mortgage.  An illegal and unethical wrap-around mortgage is a Deed of Trust masquerading as a legal and ethical Prophylactic Deed of Trust.

This illegal and unethical wrap-around mortgage's Deed of Trust masquerading as a Prophylactic Deed of Trust is being aggressively taught by Remcor to real estate agents, escrow officers/managers, title officers/managers, lawyers, investigators, judges, accountants, tax preparers, and law enforcement.

Wrap-around mortgages are the center piece of Remcor's strategy in this down market where 85 to 90% of the MLS is properties either in foreclosure or bank owned.  Remcor relentlessly pursues other real estate offices to teach this.  They have a network of existing co-conspirators they are always looking to aggressively expand.  Their hook is money.  Title, escrow, lawyers, real estate agents, loan officers, appraisers, accountants, tax preparers, and sellers all get paid off this wrap-around mortgages when so many aren't since this collapse.

Don't think the mortgage and real estate fraud has gone away because the housing market collapsed.  On the contrary.  Remcor Realty, among too many others, is always aggressively seeking and proselytizing newer and better fraud in the desperate pursuit of money in bad times, and more money for the greedy sake of money in good times. 

My Broker says our Code of Ethics prohibits us from doing anything.  Oh I can blog it here under a blog name, but that's it.  I think NRS 645 and our Code of Ethics does require us as real estate agents and Realtors to turn in these fraudsters.  My Broker says different.  I am forced to join in with the fraud in order to survive.  I am forced to participate in order to compete and make money.  I am forced to keep silent with my buyers and sellers.

Well,Well,Well! I see a lot of whining and crying and finger pointing at Allan Zane and I feel that we must hold up for him! At a time in our lives when we had no way out of a really bad situation and it seemed that noone else cared,we made that phone call in response to Allans ad in the local paper and not only did he handle our real estate in a professional and extremely caring manner(not once,but twice) it didn't cost us one penny and we came out with more cash than we could have imagined at that time! Our experience w/Allan was hugely positive and we would not hesitate to do business w/ him again! Allan was thoughtful,honest to a fault w/us and the investor that put up the cash for our property(yes we actually got to meet these people who had known Allan for years) and Allan did everything that he said he was gonna do and more! So why don't all of you just quit pointing the finger and quit playing the blame game and maybe take a hard look at your own motives for the words that you are throwing his way! Allan sat with us for hours explaining the documents,the process etc... We signed w/full knowledge and understanding of all of them and we got exactly what he said we would get out of it and then some! Stop slandering this good man!!!!!

I worked with that rattlesnake Magi Bird, and all her illegal Remcor'ites'. She teached nothing but crooked practice. And as for that Jeana Clark, well shes just bottom scum.