Yes it's the Mortgage Police and if you're a fraudster they are looking for YOU!
Fraud, fraud, it's everywhere! I've been noticing not so gentle reminders on the part we play in the larger scheme of things with the Mortgage Police. That's what I call them but really they are called the OIG.
The Office of the Inspector General is a separate statutory agency within the FHFA that answers only to Congress. Its mission, is to root out fraud, waste and abuse within the FHFA. The agency has a staff of 130 investigators, auditors, attorneys and prosecutors that it describes as 'extremely talented and seasoned'. (In IL, we usually use this spin phrase when mentioning past governors and politicial fraudsters currently serving in a down-state penitentiary).
And because Fannie and Freddie are on the hook for the $187 billion in taxpayer money to keep them afloat — by some estimates, the tab eventually could reach more than $360 billion — the OIG is on the prowl for people who owe it money. It's looking for the fraudsters.
Investigators are searching not only for lenders who have sold materially deficient loans to Fannie and Freddie, but also individuals, including those who reneged on their promises to repay their mortgages. So if you are what we call a 'strategic defaulter' who decided it was better to walk away from your house that was worth substantially less than you owed, it's time to start looking over your shoulder.
No one knows for certain how many borrowers fit the 'strategic default' profile. Experian has estimated that 20 percent of all foreclosures are the result of these walk aways, people who could afford to make their payments but who decided not to.
They are not only on the lookout for borrowers who made a personal, strategic financial decision not to pay. In some cases, they remained in their houses for months or even years, living free on the government's dime — and yours and mine — before moving on. In other instances, they profited handsomely by renting their properties to unsuspecting tenants, collecting rent for many months but never paying lenders.
Even my MLS (MRED) is posting reminders that the FBI is looking for fraudsters on our weekly bulletin board!
"Any activity that you believe may involve alleged mortgage fraud is worth reporting. Please call the Chicago FBI Crime Complaint Hotline at 312-421-6700. Callers may remain anonymous".
Whew, all this stuff reminds me of Joe Friday on Dragnet or Kevin Costner in the Untouchables.
Knock, knock ..... Oi it's the OIG!
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