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Mortgage Fraud

By
Real Estate Appraiser with Grimaldi Appraisal Services

Some interesting stats to share

  

A new report from the FBI states that mortgage fraud is up 36% from 2007 to 2008 and that so far it's "off the charts" for 2009.

  Money

In 2007 there were 46,717 cases reported. In 2008 there were 63,713 cases reported. They are saying that as of the third quarter, 2009 has produced over 70,000 cases of mortgage fraud.

  

Also the report states that the fraud is of a much larger scale: phony tax returns, pay stubs created online, etc. Big stuff.

  

It's hard to believe that mortgage fraud is even still possible in this market, but apparently it's thriving.

  

Regardless, I thought you might be interested in these numbers. At least there is some explanation as to why guidelines are still tightening up and changing.

  

In this market, communication is our best weapon during the transaction. Managing expectations and keeping everyone on the same page. That's how we can best service our clients...and maintain our sanity!

  

Posted by

Deborah Grimaldi

Re/Max 1st Choice

980 Reservoir Avenue

Cranston, RI   02910

Direct 401 837-9633

 

 

Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Deborah,  Thanks for sharing this.  I had no idea. I'm sure this is being watched a great deal more now.

Steve

Dec 16, 2009 03:02 AM
Deborah Grimaldi
Grimaldi Appraisal Services - Cranston, RI
(401) 837-9633

Hi Don & Steve,

 

We all learn things everyday, some good and some not so good, however, good to know about.

 

 

Dec 16, 2009 03:49 AM
Rachelle McMahan
Golf Savings Bank - Grants Pass, OR

Wow - I guess this shouldn't surprise me. Deborah you are absolutely right that this is one of the major reasons that underwriting has tightened up.  More files are being reviewed in post closing audits. 

Good information, thank you!!

Dec 16, 2009 04:26 AM
J Perrin Cornell
Coldwell Banker Cascade Real Estate - Wenatchee, WA
Broker, ABR, VAMRES

Yeah where there is a will there is a way... however I am always a little suspect of statistics with no or little support... there are cases in government and the private sector where statistics are easily manipulated... let see how does that go...figures don't lie but liars can figure???

Though it is hard to imagine an increase... of course the more controls and less intuition that becomes involved the easier it is to figure a way around...

Dec 17, 2009 12:46 AM
Deborah Grimaldi
Grimaldi Appraisal Services - Cranston, RI
(401) 837-9633

Hi Perrin,

 

You are so right with that, we just never know about the stats and we can only hope and do the homework to try and figure it all out. Thanks for the thought.

Dec 19, 2009 10:52 PM
Rebecca Levinson, Real Estate Marketing and Online Advertising Consultant
Real Skillz-Clear Marketing for Your Real Estate Vision - Lake Geneva, WI

Deborah,

Thanks for sharing those stats.  I just shook my head while reading that.  It is crazy that mortgage fraud would become more rampant.

Dec 22, 2009 05:49 AM