Mortgage fraud is when someone knowingly uses or facilitates the use of any deliberate misstatement, misrepresentation, or omission, knowing the same to contain a misstatement, misrepresentation, or omission, during the mortgage lending process with the intention that it be relied on by a mortgage lender, borrower, or any other party to the mortgage lending process.
In a press release by the Appraisal Institute the Financial Crimes Enforcement Network’s March 2012 Mortgage Loan Fraud Update, found that depository institutions submitted 19,934 Suspicious Activity Reports in the third quarter of 2011 pertaining specifically to mortgage loan fraud, a 20 percent increase over the previous year.
Law enforcement activities surrounding mortgage fraud across the U.S. have resulted in the arrest of thousands, according to reports. Some of the most devastating instances of mortgage fraud involve identity theft. Consumers not only have to be leery of questionable mortgage lenders, but also of others who might buy a home in their name.
30 yrs ago mortgages originated at a savings-and-loan from bankers who obeyed conservative lending rules. Sweeping changes in the finance world have created a system to helped raise homeownership to record levels, but it also has led to far looser lending standards allowing fraud to proliferate.
Predatory lenders often go after Illegal immigrants, first time home buyers, unsophisticated buyers, low income buyers, poor people who are often used as straw buyers and the elderly who might have full equity and fall victim to deed fraud.
There are dozens of scams to be aware of:
Lenders offering financial incentives to find buyers
Lenders offering financial incentives to provide employment records
Lenders targeting poor neighborhoods
Double closings; borrowers signing multiple mortgages on the same property which settle quickly and prevent the lenders from discovering the fraud
In the event of possible foreclosure:
Contact lender to work out payments
Carefully review documents before signing
Signing any kind of deeds means you’re selling your home
Be aware of people contacting you offering bargain loans or easy credit
They key to increase your “mortgage intelligence”. The more you understand about the lending process the better informed you will be to prevent being scammed. And always do business with know reputable brands.
ROBERT SICILIANO, CEO of IDTheftSecurity.com is fiercely committed to informing, educating, and empowering Americans so they can be protected from violence and crime in the physical and virtual worlds. His "tell it like it is" style is sought after by major media outlets, executives in the C-Suite of leading corporations, meeting planners, and community leaders to get the straight talk they need to stay safe in a world in which physical and virtual crime is commonplace. Siciliano is accessible, real, professional, and ready to weigh in and comment at a moment's notice on breaking news.
- Identifying Devices can stop Mortgage Fraud
What is mortgage fraud? The act of intentionally facilitating the use of, or using, any misrepresentation, misstatement or omission in a deliberate manner, being aware of the same to contain such, during a mortgage lending process, with the aim that the mortgage lender, borrower or any other participant to the mortgage lending process relies upon
- Mortgage Fraud and Identity Theft: Like Chocolate and Peanut Butter
Robert Siciliano Identity Theft Expert You don’t need to own a house to become a victim of mortgage fraud. Heck, you don’t even need to be older than 3 to be a victim. As long as the thief has a Social Security number, they can apply for loans in your name. Lexis-Nexis Mortgage Asset Research Institute
- Identity Theft Can Lead to the Most Devastating Instances of Mortgage Fraud—Identity Theft Expert and Speaker on Personal Security
(BOSTON, Mass. – April 4, 2007 – IDTheftSecurity.com) The Federal Bureau of Investigation and the Mortgage Bankers Association (MBA) have recently added to their joint efforts against mortgage fraud. Robert Siciliano, a widely televised and quoted personal security and identity theft expert, encouraged their cooperation and pressed for more action. According to Siciliano, identity thieves
- 5 Steps To Ensure Your Home Loan Is Safe
Home loans are granted by banks who are FDIC insured. The Federal Deposit Insurance Corporation (FDIC) is an independent agency created by the Congress to maintain stability and public confidence in the nation’s financial system. The FDIC preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions
- Identity Theft Protection Expert and One You Security: Mortgage Fraud Crackdown Underscores the Susceptibility of Consumers’ Financial Identities to Theft
(SARASOTA, Fla. – June 24, 2008 – One You Security) Law enforcement activities surrounding mortgage fraud across the U.S. have resulted in the arrest of thousands, according to reports. The utility of Social Security numbers as means to obtain credit fuels the pervasiveness of mortgage fraud, said Robert Siciliano, widely televised and quoted identity theft
Leave a Comment
You must be logged in to post a comment.