Mortgage Fraud Hits New High

mortgage fraudWhile homeowners suffer in a depressed housing market, one group is doing very well: mortgage fraudsters. According to a new report from the Lexis Nexis Mortgage Asset Research Institute, fraud and misrepresentation in the mortgage market reached record proportions in 2010, costing an estimated $1.5 billion.

All told, the number of mortgage fraud "suspicious activity reports" rose to 70,472 nationwide, a 5 percent increase over 2009. Most of those reports concerned misrepresentation on loan applications and verifications of deposit, as well as appraisal and valuation issues. Florida, New York and California topped the institute's Mortgage Fraud Index, which measures instances of fraud against new mortgage originations. (Also in the top 10: New Jersey, Maryland, Michigan, Virgina, Ohio, Colorado and Illinois.)

Read more about the mortgage fraud report at The Huffington Post.

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HJR Accountancy

All lending institutions must adapt their lending practices to include Assets of an individual. Banks need to go back to be Asset based lenders! A tax return, or a paystub does not garantee loan repayment back to the bank, however if you pledge an asset as collateral, then you are bound to make payments or risk loosing the property you borrowed on and against. Its rather simple and much more effective than using the 3 bureaus to evaulate if an applicant will be responsible in repaying a loan or not! If you can prove to the bank that you are successful in managing your personal finances by paying off properties, or having sufficient equity in properties, then I believe Banks MUST lend money and not hide behind the FICO score scam that they believe in, and essentially what has casused this great mess that we are in!!!!!!

May 14 2011 at 10:12 PM Report abuse rate up rate down Reply
HJR Accountancy

Let me tell you something about the banking system and the bogus credit bureaus that drive the bankers to make decisions on the credit worthiness of the applicants......it a bunch of BS!!!!!!!
I have a fico score of about 720 and I have not file for bankruptcy, yet I own my own PROPERTIES out right!!! The credit score does not take into account the fact that I have a record of success! What a scam! What a poor way to judge an applicant!

May 14 2011 at 10:05 PM Report abuse rate up rate down Reply
lindacharliebb

applicants that report inflated income should be dealing with the irs and then the justice dept. . the banks and mortgage brokers that sold those unqualified loans should be paying for the losses . all non-verified loans should be cross checked with the irs from day one . there are a lot of foreclosers coming in the next year and the taxpayers cannot handle many more of them. why are the banks not renting w/ ownership options on all these held properties ?

May 14 2011 at 9:22 PM Report abuse rate up rate down Reply
lllcln

time to go after all these banks,and all the people that caused all this fraud in the housing market.all mortages should be reviewed by the attorney general which means all documents.then see who lied and covered up and made false statements then go after these people take back their ill gotten gains and put them in prison for a very long time.this will teach others that if you cheat and steal you get caught and you go to jail .

May 13 2011 at 6:11 AM Report abuse rate up rate down Reply
shurtcircuit

The banks need to return the stolen houses back to the people. This is the FRAUD MODIFICATION FRAUD!

May 12 2011 at 10:49 PM Report abuse rate up rate down Reply
Aphidavis

THE FEDERAL RESERVE IS THE ULTIMATE CULPRIT!

May 12 2011 at 10:40 PM Report abuse +1 rate up rate down Reply
Lou

Mortgage fraud, yes it's called bankers, lenders and incompetent loan originators. lets see Scams- 1.5 billion - banks $850 billion guess which ones are the real crooks.

May 12 2011 at 10:29 PM Report abuse -1 rate up rate down Reply
sneakyp957

I contacted a mortgage company a few days ago that was advertising 2.99 percent fixed rate mortgages,and when they got back up with me it was a Chinese mortgage company in Virginia that was ran by a Chinese.

Needless to say I didn't even apply once I found that out.

May 12 2011 at 10:12 PM Report abuse +2 rate up rate down Reply
Buk

If your trying to modify a mortgage call your mortgage holder and ask them directly. I called Wells Fargo BEFORE i was behind on payments. It took 6mo before all the paperwork and approvals came thru. I lowered my payment by $500 a mo, and got %2 for 5 yrs then 3 4 and capped at %5, The key to it working for me was that I never fell 90 days behind.
On a side note... why the hell would ya give info to an unsolicited phone call or email... stupid much?

May 12 2011 at 9:29 PM Report abuse +1 rate up rate down Reply
thetoprope

Mrchalich, I have something like that going on with me now, "Chase" If you get this please write me back to
thetoprope@aol.com

May 12 2011 at 7:43 PM Report abuse rate up rate down Reply