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rrroberts
256 Posts |
 Posted - 02/08/2006 : 5:36:19 PM
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The office of the FBI has been investigating mortgage/real estate and loan-related frauds on a case by case basis.A review of these cases revealed that distinct types of frauds are being committed against various banks,mortgage banking companies and individuals. Loan fraud generally does not occur through the actions of one rogue mortgage broker.Typically,it involves a group of individuals who conspire together to get their customers loans approved.This group generally includes a mortgage broker,bank insiders, tax practitioners/accountants,appraisers,title search companies,borrowers, real estate brokers,credit companies and others who may be part of loan or mortgage transactions.These conspiracies make mortgage fraud difficult to detect and even more difficult to prosecute.
The above information was taken from a file in Federal court.
There are individuals as listed above that are doing the fraud all by themselves, whether its altering a PA, a 1003, the title, inflating or under valuing the appraisal. We know that this happens and we need to stop looking the other way. Self policing is something that we owe to each other and our industry. Education is the beginning of prevention. Accountability will lead to credibility.
Interested in your thoughts.
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jmayne
50 Posts |
Posted - 02/08/2006 : 6:39:44 PM
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The FBI also reports that 80% of all financial fraud involves collusion or colaboration of industry insiders. This means that 80% of the time (in fraudulent transactions) one of the parties - loan officer, AE, appraiser, processor, underwriter, closer, real estate agent, etc. - has knowledge of the fraud/misrepresentation and could have stopped the transaction from happening; could have saved the victim.
Education!!! |
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Douggie
1367 Posts |
Posted - 02/08/2006 : 8:02:24 PM
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Well I just sent an Email to a customer I DOC'd tonight. The Email was about the possiblity of her recieveing an overnighted package from another lender. I also explained to her that a agency (EXPERIAN) will sell the personal data (DATA THEYRE SUPPOSED TO BE SAFEGUARDING) to chop shop type (that was my explination anyway) of brokers just looking to make a BIG buck.
Now, loop hole or not. Why isnt anybody.....ahem...like maybe our government stopping this? ANYBOY can make up a business name. Tell them theyre a brick and mortar set up and buy pretty much what ever they want. This goes down as far as buying the customers credit scores.
Whos fruading who?
I also had a conversation today with a lady from chicago thats in the biz. We relayed info on places we worked at and how decietful people can be in the business. We concluded that the 2 PRETTY DAMN BIG CASES that we were in contact with the broker almost walked away with nothing...... the one I was in contact with did everything you can think of. You would see him going through the phone book looking for an appraiser that would look the other way. Constantly calling 2nd homes owner occupied, he was a stated program was a liars program type of broker. He open an account using the lenders name and had the checks deposited to his account. He took cash from 2 old retired couples (40K) and just stiffed them.....I mean the list goes on.
He got house arrest, probation for a year and restitution
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Corny
2159 Posts |
Posted - 02/08/2006 : 8:24:18 PM
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This is the reason I'm so very stern about comp checks and why the selection of the appraiser and the ordering of the appraisals is about to be taken away from anybody in loan production. There are so very many that are either just plain crooks and/or were taught the WRONG way of doing things.
It's a fact that the appraisers that do comp checks 'push' the values just to get the paid orders.
Telling the appraisers that do comp checks to 'Just say, "NO"' works about as well as telling that to the junkies about their drugs. It has to be stopped from both sides and that's the primary reason that I'm here on this forum. If even one here get's my message and stops asking for comp checks because they connected the dots I've shown them, then no matter what anybody else thinks, I've done a very good thing.
More facts:
* Most mortgage fraud DOES involve an inflated appraisal and it was done by an appraiser that does comp checks.
* The vast majority of the banks and Federally Regulated lenders do NOT call for comp checks and do NOT put a value wanted on their appraisal orders. These things are almost exclusively done by mortgage brokers.
This real estate boom has been quite a huge party for longer than any other time in our history. IMO, there's going to be huge fallout in all 'professions' real estate related. Some will go to prison, some will have everything they accumulated confiscated, some will just go away to some other job. Sadly, some of the good guys will be caught up in this too. |
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jmayne
50 Posts |
Posted - 02/13/2006 : 05:08:38 AM
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| Douggie - this last guy you talked about, the guy who got house arrest, etc., is lucky that's all he got. People have gone to prison for a fraction of what this guy did. |
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Douggie
1367 Posts |
Posted - 02/13/2006 : 07:26:02 AM
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Exacally, and with the ameriquest sh*t....and talks to other brokers that known of people who got a light sentence. There is something wrong with it all. Like I said before.
They prosecute people more that just make a misteak then they do for fruad. Its really pissing me off. |
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