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Have all the people wearing white hats gone away? Mortgage Fraud

By
Mortgage and Lending with Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 NMLS ID# 158606

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:

  1. Los Angeles, California: 2,293
  2. Atlanta, Georgia: 1,459
  3. Chicago, Illinois: 1,245
  4. Miami, Florida: 1,191
  5. San Francisco, California: 942
  6. Detroit, Michigan: 914
  7. New York, New York: 907
  8. Dallas, Texas: 635
  9. Phoenix, Arizona: 631
  10. 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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Comments (10)

David L. Britt
Platinum Realty, LLC - Olathe, KS
MBA

Larry, no but they are harder to find!  We have had our fair share of these in Kansas City as well! 

Jul 25, 2007 05:17 PM
Sarah Eubanks
Hill Valley Financial Services - Oregon City, OR
Preferred Oregon Loan Consultant & Notary Public
Count the Portland, OR metro area in as well.  I am with you 100%!  Referrals are the way to go.  To me, if a lender is spending a lot of money on marketing ads, fancy offices, and or fancy cars to get your attention, remember that they are paying for all of these things somehow, and probably with your money.  "Let the buyer beware!"  Thanks for the great post.  BTW, Can I just make sure that my white hat has a cute style to it?  LOL  :-)
Jul 25, 2007 05:24 PM
Christopher Currins
CBC Home Inspections - Godfrey, IL
Metro East Home Inspector - IL.
All I have to say is, there are honest mortgage brokers out there and there or some that have the same motive as a "used car salesman".
Jul 25, 2007 06:50 PM
Brian Brady
Matthews Capital Markets - Tampa, FL
858-699-4590

Check their credentials and check their background with the state's licensing body

The first bit of advice is golden.  Call Realtors with whom they've done business for the "skinny" on their behavior and expertise.  The state licensing body?  Say what?   You'll get proof that the originator paid his $42.50...that's about it.

 

Jul 25, 2007 06:51 PM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
David...yes indeed....that's why the good ones still stand out
Jul 26, 2007 01:35 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
Sarah....get all the style you want.  Great comments.  Too bad we need all these licensing requirements.  They just need to prosecute the crminals
Jul 26, 2007 01:36 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
Christopher....there are both....let's get rid of the bad....thanks
Jul 26, 2007 01:36 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
Brian....good point....maybe stick with the referral.....by the way its 105$ in Illinois
Jul 26, 2007 01:37 AM
Shane Sarae
Honolulu, HI
Thank you very much for sharing, unfortunately, it doesn't matter what the occupation, there will always be some con artists.
Jul 26, 2007 12:43 PM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production
Shane....how true....it's just important to continually seek the better and rid the worse.
Jul 26, 2007 03:28 PM