California Department of Real Estate Steps Up Disciplinary Actions
The California State Department of Real Estate cracked down on the amount of illegal mortgage activity taking place throughout the state over the last fiscal year by setting record highs in several categories.
Through the end of June 2012, the DRE suspended, surrendered and revoked a record 1,109 real estate licenses for the fiscal year within the Golden State.
According to the DRE, 781 real estate licenses were revoked FY 2011-12, which was up about 14% from the previous year when 686 licenses were taken away.
Meanwhile, the DRE suspended 190 real estate licenses for cause, nearly an 80% increase compared to the 106 license suspensions in the prior year.
License surrenders, which occur when an individual yields their license rights while a disciplinary action is pending, also peaked at 138 FY 2011-12. This is up 20% from a year ago when 115 licenses were handed over.
Additionally, the DRE issued 213 Desist and Refrain Orders through June 2012, which is also a record high. Desist and Refrain Orders are typically issued to stop an unlicensed person or entity from engaging in acts for which a license is required.
The 213 Desist and Refrain Orders is 170% higher than the 79 distributed five years ago.
“The collapse of the real estate market clearly contributed to the record number of disciplinary actions,” the DRE said in a press release. “With the large number of financially stressed homeowners, the table has been set for scammers involved in foreclosure rescue and short sale scams.”
Since 2010, the DRE has filed nearly 500 accusations and Desist and Refrain Orders against approximately 1,400 respondents who were involved specifically in illegal short sale and foreclosure schemes.
Bill Moran, enforcement chief and acting chief deputy real estate commissioner for the California State Department of Real Estate, said consumer education is also very important to protect consumers from mortgage scams.
“While purging the unscrupulous operators from the real estate industry is vitally important to protecting consumers, it is only one piece to the puzzle,” Moran added.
In order to help consumers and falling victims to scams, the DRE has created publications and issued alerts on a variety of topics including how to steer clear of, how to find a real estate agent and information on the foreclosure process. The DRE’s website features all of the latest consumer alerts as well as tips on how to protect yourself from real estate scams.
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