It seems that every time you turn around there is another story about mortgage fraud or about the sub-prime market going asunder. I'm not sure how many people have actually put the two together. In other words....could there be high defaults within the mortgage industry because of so much mortgage fraud? That seems to be a great parallel.
I don't get it. I want to make a buck as much as anyone. I keep telling God to give me patience, but damn it, give it to me now. In other words...I'm an impatient kind of guy. Anyway....I've always been persistant in my endeavors. I can't imagine what would cause someone to willingly take short cuts for a paycheck. People have taken short cuts unknowingly. I can't fault that. It may not be right, but the "INTENT" is lacking to make some action a crime. BUT OUR OWN ARE FALLING LEFT AND RIGHT.
Just today Michael Mapes talks about Mortgage Fraud....Mortgage Fraud, It's an inside game. I'd like to believe that we, who belong to AR, are a "step above" the rest. Maybe that's presumptuous as I'm sure there are people here just to make a buck. I want to make a lot of bucks, but it takes work....real work. Ralph Roberts is taking on fraud in bundles....check out activerain i will be Crusading against Real Estate and Mortgage Fraud, 100 People at a Time.
Look at what the FBI is saying:
FBI Releases Latest Real Estate and Mortgage Fraud Statistics
The FBI just released its latest figures on real estate fraud, and for some parts of the country, the news isn't very good! According to the FBI, Southern California has the most reports of mortgage fraud in the country, topping the closest region in the number of reported cases by over 35 percent. Since January 1 of this year, the FBI has received 2,293 reports of suspected fraud in the Los Angeles area alone, and 4,228 in the Southern California region.
Real estate industry insiders in a number of ways initiate reports of Real Estate and Mortgage Fraud to the FBI. If a lender identifies a suspect, it is required to report the suspected activity to the FBI. However, according to the Los Angeles Times, only lenders that operate as banks are required to file suspicious activity reports with the FBI. That's a growing number of lenders, say the LA Times, but banks account for less than one-half of all mortgage loans (mortgage brokers, which arrange loans but do not fund them, are not required, for some reason, to file reports with the FBI).
The FBI's list of Real Estate and Mortgage Fraud hot spots thus far for 2006, with the number of cases reported through September 25, is as follows:
- Los Angeles, California: 2,293
- Atlanta, Georgia: 1,459
- Chicago, Illinois: 1,245
- Miami, Florida: 1,191
- San Francisco, California: 942
- Detroit, Michigan: 914
- New York, New York: 907
- Dallas, Texas: 635
- Phoenix, Arizona: 631
- Houston, Texas: 618
Illinois is a hot spot....but so are a lot of other areas. Make sure that when you're working with a lender. Go with someone who has been referred to you by someone reputable, someone you trust. Check their credentials and check their background with the state's licensing body. Most of all, support those who are doing business the right way.
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