mortgage fraud: Financial Fraud "one of the most glaring threats" facing the US economy- increased 400% in 2009
- 05/21/10 07:07 AM
Mortgage fraud investigations by the FBI increased 400% in 2009, according to an Office of Thrift Supervision (OTS) report on fraud and insider abuse. The report states that, "Difficult economic times often lead to an increase in fraud and insider abuse. During the market downturns of the late 1980s and early 1990s, fraud and insider abuse significantly contributed to thrift failures and caused substantial losses at many others. Since the recession began in 2007, there have been increases in white collar crime as well as changes in the way fraud scams are carried out. Although certain crimes such as, investment fraud … (0 comments)
mortgage fraud: Judge she is “still a very dangerous person” who poses a substantial risk to society.
- 05/20/10 06:01 PM
Fraud Schemes involved more than 400 victims and 20 fraudulently acquired properties The founder and head of Chicago Development and Planning was sentenced yesterday to 15 years and eight months in prison, and ordered to pay more than $9 million in restitution She fled to Mexico when she learned that federal authorities were investigating Chicago Development and Planning. After spending several months in Mexico, she returned to the United States, but made continued efforts to avoid law enforcement: she did not have a valid driver's license in her name, did not have a phone in her name, and she cut off … (1 comments)
mortgage fraud: Mortgage Scammers- Creating a Human Tragedy of Immense Proportions
- 05/20/10 04:57 AM
17 New York Charged in Massive Mortgage Scam have been charged with defrauding legitimate homeowners and various lending institutions out of more than $3 million in equity that had been stripped from 26 refinanced residential properties valued at $13 million. Many of the loans subsequently went into default, leaving lending institutions with insufficient collateral and substantial losses, or into foreclosure, leaving homeowners, in some cases, homeless. The defendants are variously charged with first and second-degree grand larceny, first degree criminal possession of stolen property, first-degree money laundering, first-degree identity theft, second-degree forgery, second-degree criminal possession of a forged instrument, first-degree falsifying … (0 comments)
mortgage fraud: The Enablers for this "Real Estate Crisis"- Willful Blindness, Greed or more?
- 05/01/10 09:48 AM
Our Real Estate & Mortgage Industry is saturated with "Fraudsters", "Willful Blindness", "It Is Not My Problem" mind-set and a lack of integrity from many individuals.Congress, Fannie, Freddie and companies like Goldman "might" have been the enablers for this "Real Estate Crisis" to exist, although as I have said for years, institutions don't commit fraud, companies don't commit fraud - people commit fraud. We as an industry and country need to talk and learn from the past in order to move into a prosperous future. Read the whole article @ http://tinyurl.com/2bhjecl I know many people have been sitting back, waiting, watching, and … (0 comments)
mortgage fraud: "Operation Pay Back” - Mortgage Fraud Players Contributing -
- 04/13/10 01:06 PM
Criminals also to blame for housing crisis! A lot of blame for the housing crisis that helped drive our nation into a financial crisis has been heaped on "greedy" bankers and home buyers trying to live beyond their means.But there was another element that should not be forgotten - and that was outright criminal activity. As you know real estate is a people profession. From the real estate agents in the field to the loan officers or loan processors working with borrowers to the title agents sitting down with families closing on their first home, we are people serving people. Those … (1 comments)
mortgage fraud: Mortgage Fraudsters- “Flipped” Houses Three, Four and Even Five Times-Sentenced
- 04/05/10 05:08 AM
The Now-Failed Omni National Bank Helped Fund Millions in Loans for Convicted Mortgage Fraudster Mark McBride. Omni also has been linked to other mortgage fraud operations uncovered by regulators, stolen multiple identities and another where they falsified the income and employment records of borrowers he steered to Atlanta-based Omni. Omni was the go to funding source for fraudulent property flippers, some of whom did superficial repairs in order to resell homes at inflated prices with the use of straw buyers to obtain fraudulent loans, often making as much as $30,000 in fees on individual transactions. Read the whole article @ http://tinyurl.com/y94zqwt … (0 comments)
mortgage fraud: Buyer was Girlfriend- Surprised with Mortgage Fraud & Identity Theft –
- 03/31/10 06:14 AM
Detecting mortgage fraud is a mind-set, like exercising or eating right. Habits are born of routine and the surest way to start spotting fraud is to become aware of its existence. A former loan officer in Vancouver, Washington, was sentenced on March 29, 2010, by U.S. District Judge Garr M. King to serve 24 months in prison after pleading guilty to a charge of aggravated identity theft. Herndon must also serve one year of supervised release following his prison term. The defendant was ordered to report to the custody of the Bureau of Prisons on June 1, 2010. Please share these … (0 comments)
mortgage fraud: Mortgage Fraud Summit-You Will be Found, You Will Be Prosecuted, and You Will Be Punished
- 03/28/10 09:40 AM
"We have one message to those who would engage in mortgage fraud schemes: you will be found, you will be prosecuted, and you will be punished." said Attorney General Holder. Read the whole article @ http://tinyurl.com/yjpdzon The sad part is that some of us don't even realize when we're being included in a fraudulent scheme. I believe some of this is partly due to ignorance, other times it is out of laziness, more times than not in the hustle and bustle of our daily lives it's out of sheer Busy-ness, but sometimes it is simply due to a "don't ask, don't … (0 comments)
mortgage fraud: Free Homes for Seniors and False Equity - Beware of Mortgage Fraud -
- 03/28/10 04:51 AM
The estimations differ on the extent of fraud in the reverse mortgage business, although there seems to be a consensus that it is small by comparison to forward mortgages but with the recession and overall economy appear to keep the flames of reverse mortgage fraud bright. Read the whole article @ http://tinyurl.com/yldbk9g Seniors should always consider the follow: •· Do not respond to unsolicited advertisements. •· Be suspicious of anyone claiming that you can own a home with no down payment. •· Do not sign anything that you do not fully understand. •· Do not accept payment from individuals for … (1 comments)
mortgage fraud: “Identify Theft” Mortgage Fraud Scammers Arrested –
- 03/24/10 02:59 AM
"Identify Theft" Mortgage Fraud Scammers Arrested - While preparing the loan applications, the name and social security number of another individual were used without that person's knowledge, input or authority, identity theft Read the whole story http://tinyurl.com/ycs3osr We should all recognize individuals commit the act of fraud not companies. Every part of the mortgage lending process presents another window of opportunity for people in our industry who, by the very nature of their job description, are exposed to unscrupulous loan originators, builders, real estate agents, borrowers, processors, underwriters, appraisers, lender account reps, and title closers. Each one of these positions or … (1 comments)
mortgage fraud: Say it’s Not So Joe- Police Officer Arrested for Mortgage Fraud
- 03/12/10 07:55 AM
A New Jersey, a police officer, was arrested based on a obtaining a mortgage loan that he obtained through false representations. According to the Complaint, he and his wife own property in Secaucus, New Jersey which they purchased in June 2000 with a thirty-year mortgage for $513,700. Around March 2008, in order to purchase a multi-family dwelling in Jersey City, he applied for another loan with the same lender. During the loan application interview he failed to declare his outstanding mortgage liability on his existing home property; then falsely reported that he rented, rather than owned, the property; and falsely stated … (1 comments)
mortgage fraud: Forged Power of Attorney to Unlawfully Obtain a Mortgage from Mother-In-law’s home
- 03/09/10 02:31 AM
Queens District Attorney Richard A. Brown today announced that an international businessman who resides in Manhattan has been sentenced to three to nine years in state prison for having used a forged power of attorney to unlawfully obtain a mortgage on his mother-in-law's condominium in the Little Neck section of Queens and steal more than $300,000. The condominium had been free and clear of any mortgages prior to the theft. To read the whole story: http://tinyurl.com/ygzom4e We must be vigilant against fraud, recognizing its signs and taking proactive, definite, and realistic steps to not only prevent it but also punish it. It … (0 comments)
mortgage fraud: Murder Led Prosecutors to “Operation Bankroll” Fraud Scheme –
- 02/23/10 11:30 PM
An investigation dubbed "Operation Bankroll" involving an assortment of schemes including money laundering, identity theft, mortgage fraud and larceny. The indictment charges that between 2006 and 2009, the defendants participated in a series of financial and real estate scams in order to steal and launder money from the clients of a law firm, as well as clients of an Abstract Company. This indictment was a result of an investigation that was initiated after the July 2008 murder of attorney Mark Schwartz and his wife in their home. The person responsible for of that crime is still unknown, although the investigation into … (1 comments)
mortgage fraud: Mortgage Loan Fraud Up 7.5 percent
- 02/19/10 01:03 PM
The Financial Crimes Enforcement Network (FinCEN) released a new analysis of suspicious activity related to possible mortgage loan fraud in the third quarter of 2009. The report shows that in the third quarter of 2009, depository institution filer's submitted 15,697 mortgage loan fraud (MLF) SARs, a 7.5 percent increase over the same period in 2008.The analysis found that suspicious activity reports (SARs) indicating suspicious activity by: Loan Modification's Foreclosure Specialists Two types of schemes were most common:1. The fraudsters conned homeowners into signing quit-claim deeds to their properties and then sold homes from under the former owners to straw borrowers; the … (2 comments)
mortgage fraud: “Mortgage E-Verify Act” to Prevent Mortgage Fraud by Illegal Aliens
- 02/18/10 07:37 PM
The Mortgage E-Verify Act, introduced would require that the identity of all applicants for new or modified mortgages held by Fannie Mae or Freddie Mac or insured by the FHA, be confirmed through the E-Verify program of the Department of Homeland Security. U.S. Congressman Rep. Kenny Marchant from Texas has just introduced a bill intended to prevent mortgage fraud by illegal aliens. "My bill will potentially save millions by cutting down on fraudulent claims from illegal immigrants and protect taxpayers from subsidizing the restructuring or renegotiation mortgages of illegal immigrants," said Rep. Marchant in a press release. Marchant cites Treasury Department … (2 comments)
mortgage fraud: Spotlight on Fiduciary Responsibility of Homeowners Association Leadership
- 02/14/10 03:03 AM
There hundreds of stories on blog sites about the association management, staff, and board members spending money without accountability and downright unethical directors who steal association funds or find a way to benefit one way or another. With this alarming number of homeowner association members or owners complaining about fraud - or perceived fraud - we need to turn the spotlight on fiduciary responsibility. We should all know individuals commit the act of fraud not corporations. Community associations are a type of corporation, but they lack a corporate-like investigatory body to flush out suspicious activities. In other words, most members of … (0 comments)
mortgage fraud: Florida Quality Council- Join in the awareness and prevention of fraud
- 02/11/10 07:00 AM
Florida Quality Council is having a membership drive, only $39.00 for 2010! Florida Quality Council Vision: The Florida Quality Council will be a voice for quality and awareness of fraud in the mortgage profession:advocating fairness to all lenders, support vendors and homeowners, promoting best practice, and providing exceptional service to its members. MISSION The mission of the Florida Quality Council is to provide dynamic leadership in the awareness and prevention of fraud for the profession of mortgage lending. Activities in support of this mission will include but will not be limited to: Advocating and promoting the value that real estate … (0 comments)
mortgage fraud: Mortgage Fraud Appraiser to pay $46 Million in restitution after federal prison time!
- 02/03/10 12:39 AM
During the trial last summer a real estate appraiser was shown as a part of a wide-ranging and sophisticated scheme that obtained inflated mortgage loans on homes in some of California's most expensive neighborhoods, including Beverly Hills, Bel Air, Malibu, and more. The fraudsters created and submitted false documents, including fake purchase contracts and appraisals, to the victim banks to swindle them into funding mortgage loans that were hundreds of thousands of dollars more than the homes actual value. Lehman Brothers Bank is just one deceived into funding more than 80 such inflated loans that resulted in tens of millions of … (3 comments)
mortgage fraud: High End “Straw Buyer” Mortgage Fraud Scheme- Exposed
- 02/01/10 09:41 AM
A self-employed tax preparer, banker, mortgage broker, interior designer , owner of a property management company and others called have been charged in participating in a mortgage fraud scheme to sell four high-end luxury properties to "straw buyers" were indicted. An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty in court. Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Richard Cordray, Warren County Prosecuting Attorney Rachel Hutzel, and Keith L. Bennett, Special Agent in Charge, Federal Bureau of Investigation (FBI) and other task force participants announced the indictment. Stewart … (2 comments)
mortgage fraud: Mortgage Fraud, let's not just talk about it this time, take action!
- 03/26/09 02:25 PM
Mortgage Fraud, let's not just talk about it this time, take action! By Michael S. Richardson - Author & Forensic Mortgage Fraud Expert michaelr@preventmortgagefraud.com www.preventmortgagefraud.com Once a white-collar criminal gets away with fraud, the process quickly becomes addictive. Success breeds more success, and before long such crafters of fraudulent mortgage loans clearly begin feeling that not only are they above the law but in fact, they are not doing anything wrong in the first place. Fraud can happen to anyone: loan officers, processors, underwriters, buyers, sellers, investors, owners, and management of mortgage companies. It can happen anywhere: big cities, small … (0 comments)
Mortgage fraud investigations by the FBI increased 400% in 2009, according to an Office of Thrift Supervision (OTS) report on fraud and insider abuse.
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