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Don't They Realize Where They'll Be Soon?

A recently issued report by the Mortgage Asset Research Institute (MARI) states that mortgage fraud climbed 42% in the first quarter of 2008. The lender criteria has tightened considerably so that some feel it is necessary to 'tweak' applications. The most common situations cited were General Application Misrepresentation such as debt & asset misstatements, invalid social security numbers, incorrect addresses and Employment & Income falsification.

Loan applications are at an 8 year low according to the Mortgage Bankers Association and this supposedly makes the so-called 'professionals' push for clients. Maybe understandable but is this just another another area where it has consumer education is necessary?

Do these clients know where they may be heading?

The number one & two ranked areas were Miami, Florida and Los Angeles, California. Wanna guess where the next 3 top areas for mortgage fraud were?

CNN: Mortgage Fraud is Still Soaring - Read the Story

Posted by Lynnette Phillips Real Estate Consultant on 08/27/2008 01:46 PM

Comments (9)

in the Mortgage / Finance Channel

mortgage fraud, foreclosure, lynnette phillips, scams, home pride mortgage, yucaipa

This post has been included in California Information
Post is included in group: Everything California
Post is included in group: Mortgage, Foreclosure & Elder Abuse Housing Fraud
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Post is included in group: Real Estate Fraud, Scams and Ponzi schemes REPORT THEM HERE
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9 Comments on Don't They Realize Where They'll Be Soon?

AUG

2008

I think lenders are performing VOE's just before closing too; this must be an attempt to curb lying about employment.

Thanks for writing. It's a tough world out there. Veronica

Wow, I can't believe fraud rose 42%, that's really sad, I guess some people never learn. Thanks for sharing.

AUG

2008

Interesting post...I wonder if Indiana is in the next top 3???

Isn't mortgage fraud (committed individually and collaboratively by all parties) largely responsible for creating this mess. It's mind boggling to think that continuing these practices is helping anyone.

AUG

2008

Yikes! 42% is scary. In addition to fraud there are some lousy lenders that are still in the business too. If a lender does not know exactly what fraud is, it is difficult for them to know if they are committing it.

SEP

2008

Ryan, it is scary! Besides fraud and lousy lenders now it seems there are homeowners who feel it's OK to add to the problem - but then again who can blame them? View my related post Homeowners Also Responsible for Mortgage Fraud

Stephen, evidently the VOEs haven't been enough! Thanks for stopping by & taking the time to comment.

Veronica, it seems this "tough world" just keeps getting harder to deal with. Thanks for the comment.

Joseph, Thanks for reading my posts. I don't know what's more frightening the scammers or the fraud!

Cindy, Relax, the 3 tied for third were Illinois, Maryland & Michigan. Thanks for writing.

NOV

2008

It's hard to believe that they "lenders" or whomever are still practicing this typeof fraud--when will it end! This is really hurting us all! I really hate this because it hurts innocent people more than them--and we, honest, real estate professional get hurt too! Everyday it gets harder to make a living in this business! When will it End!

Thanks for sharing!

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