When we tell the FBI the truth

Education & Training with Real Estate Expert Witness Support

I was in a seminar given yesterday by the FBI fraud division.  They were discussing their efforts to clean up real estate fraud of various kinds.  Right behind me,  an agent raised her hand and asked, ......."You know,  for the longest time,  we have been putting anything on the loan app that would get the buyer qualified.  Is that fraud?"

Most of us laughed but then we realized she wasn't kidding.  She was one of these agents who does loans and real estate. And,  she was trained that you do whatever it takes to put the deal together,  including commiting lender fraud by falsifying the information provided on the loan docs.  Isn't this one of the main reasons that we are in this financial mess??  And,  with unsophicated borrowers,  they can run the rates up and stick them with pre-pays to increase their lender margin kickback.  I recently saw a deal where the lender made 1% upfront and $12000 on the backend on $500,000 loan.  Outrageous.

Back to the FBI.  The presenter admitted that they just don't have the personnel to go after the onesy, twosy deals.  But,  if we suspect that an office or compay is regularily doing this,  we should call the FBI office.  Your information will never be revealed.

Posted by


Guy Berry

Email - guy@guyberry.com

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Comments (9)

Portsmouth NH Real Estate Agent - Rebecca Skane, Realtor®, e-PRO®
Keller Williams Coastal Realty - Portsmouth, NH

Good to know.  I think this is a very important post!  Real estate professionals should make it their own business to blow the whistle when we see real estate fraud of any kind, rather than staying out of it.  It is, after all, our business.  And any little thing we can do to help get this economy back on its feet will help.

Oct 03, 2008 11:23 AM
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate



Scary, that she had to ask and is working with people.

Oct 03, 2008 11:31 AM
Lou Farris
Your Castle Real Estate, Inc! - Highlands Ranch, CO

Does that mean we can turn our representative in government, CEo of failing companies, and Fed Chairmen in?


Lou Farris, MBA, Realtor(R)

Oct 03, 2008 11:37 AM
Neal Bloom
Brokered by eXp Realty LLC - Weston, FL
Realtor CRS-Weston FL Real Estate


I like your post a lot...I think it's funny that someone would continue to practice this crap and on top of it admit it to an person affiliated with the FBI. Not enough personnel?...are the working in the loss mitigation department?:)

Oct 03, 2008 11:43 AM
Mott Marvin Kornicki
Waterway Realtors® • Notary Public & Apostille - Sunny Isles, FL
Miami Notary & Apostille 786-229-7999

It seems like the shenanigans have stopped for the most part. I'd bet that the next real estate related fraud will be connected to short-sales.

Oct 03, 2008 11:48 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

I'm amazed that someone would ask that question today with all of the news surrounding mortgage fraud.  There are a few agents and loan officers in my area under investigation.  I'm sure we can all name someone who we think was involved in some shady dealings.

Oct 03, 2008 12:00 PM
Lori Lincoln And Associates
Top Agent Serving Dighton Taunton, Rehoboth and more! - Taunton, MA
Top Agent Taunton,Dighton Rehoboth &more

So glad I was trained the right way.. I sometimes am accused of being "too by the book". I say, you can do just as well ( if not better  in this business doing the right thing.

Oct 03, 2008 12:09 PM
Mary Pope-Handy
Sereno Group Real Estate - Los Gatos, CA
CRS, CIPS, ABR, SRES, Silicon Valley

The interesting thing is that apparently this gal had NO idea that what she was doing was wrong, or was fraud in particular.

I think some of the problem goes back to a low threshold of entry for lenders and for agents. Even worse, lenders who work at banks don't need to be licensed in California. What's up with that?? Everyone should be regulated equally, and the standards should be toughened up to include a serious and comprehensive study of ethics to be licensed.

Oct 03, 2008 02:08 PM
Myron Von Raesfeld


I was at the same seminar and was amazed at the woman's comments, however, I am more amazed that this woman's Broker has allowed her to continue to practice in this way. Based on this woman's comment I would guess that she is not the only one in this company who has engaged in this behavior, hopefully they are already on the FBI's list.

Perhaps as a result of the extensive amount of lender fraud we may see some regulations out of Washington to prevent brokers from engaging in lending practices when they are also representing the Buyer or Seller as a Real Estate Agent as well. While not the only reason for much of this type of lender fraud, this type of duel representation has contributed to a significant amount of the problems we are facing.  

Myron Von Raesfeld

Oct 20, 2008 05:15 AM