Home loan application fraud

The artificially inflated property value enables the pur r to obtain a greater loan than would otherwise be possible.A New York criminal lawyer explains mortgage fraud offenses and possible consequences.Georgetown Home Builder Convicted Of Bank Fraud, Embezzlement, Aggravated Identity Theft And False Loan Application.

Avoid fraud and its consequences by not lying on a mortgage application.The MBA NDS 2010 data indicate that while the seriously delinquent rate for subprime loans was 28.5 percent in 2010, the rate was 38.9 for subprime Adjustable Rate Mortgages (ARMs).When a mortgage loan applicant applies for a mortgage, one of the questions that is asked is whether the property the home.Builder bailout schemes are common in any distressed real estate market and typically consist of builders offering excessive incentives to buyers, which are not disclosed on the mortgage loan documents.One response to Man Receives 3 Year Prison Term for Lying on Loan Application.

U.S. Department of Housing and Urban Development - Office of Inspector General.

Many consumers worry that personal financial information that they may submit over the Internet could be intercepted by hackers and used for.While these discrepancies have minimal impact on the overall findings stated in this report, we have noted specific instances in the text where they may affect conclusions.Collaborative educational efforts are ongoing to raise public awareness of mortgage fraud schemes through the publication of the annual Mortgage Fraud Report and the Financial Crimes Report to the Public, and through the dissemination of information jointly or between various industry and consumer organizations.Financial industry reporting indicates that foreclosure rescue schemes remain a current threat. 61 Analysis of FBI intelligence reporting indicates that foreclosure rescue schemes were the sixth-highest reported mortgage fraud scheme in FY 2010.

Mortgage fraud perpetrators target victims from across a demographic range, with perpetrators identifying common characteristics such as ethnicity, nationality, age, and socioeconomic variables, to include occupation, education, and income.While the FBI has high confidence in all of these sources, some inconsistencies relative to the cataloging of statistics by some organizations are noted.

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According to the National Association of Realtors, pending home sales decreased 6 percent from 2009 to 2010, and existing home sales decreased 5.7 percent for the same period. 34.A review of banks that failed due to overexposure to commercial real estate debt during the boom years revealed that a small percentage showed fraudulent commercial real estate activity, attempts to hide bank financial conditions, and insider loan schemes through which executives and other insiders benefited by controlling lending decisions.The Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) report that completed foreclosures in the fourth quarter of 2010 decreased by nearly 50 percent and newly initiated foreclosures decreased by almost 8 percent as a result of the moratorium on foreclosure actions by the largest mortgage service providers brought on by the robo-signing issue. 21.An East Naples home builder was charged Tuesday with mortgage fraud as part of a wide-sweeping federal investigation that began last year.Tips to protect yourself from mortgage fraud while home shopping.Fill out our mortgage application form or call us to start the process.Mortgage fraud at an all-time high As the number of home sales dwindles and lenders tighten requirements for dolling out loans, despe n breeds dishonesty.

The geographic specificity of industry reporting varies, as some companies report at the ZIP code level and others by city, region, or state.The bad news: The result of such fraud in the second quarter of this.The intention of mortgage fraud is typically to receive a larger loan amount than would have been.Mortgage fraud is a material misstatement, misrepresentation, or omission relied on by an underwriter or lender to fund, pur, or insure a loan.Personal Loans RRSP Loan Home Equity Loans Personal Line of Credit Retro-Activator.

SARs filed by financial institutions indicate that there were 70,533 mortgage fraud-related SARs filed with FinCEN in FY 2010 — a 5 percent increase from FY 2009 and an 11 percent increase from FY 2008 filings ( see Figure 9 ). c.As of December 2010, activity in the housing market remained very weak as new construction and permits declined, demand for housing remained depressed, home sales declined, and home prices decreased.In a majority of these schemes, the fraudsters made 15-18 payments before defaulting.States with the highest overall delinquency rates were Mississippi (13.3 percent), Nevada (12 percent), and Georgia (11.9 percent).Fraudsters are using payment abatements to delay defaults, inflated property values, and failure to disclose debt.The Secure and Fair Enforcement (SAFE) for Mortgage Licensing Act—enacted in July 2008— required states to have a licensing and regist n system in place for all loan originators by July 31, 2010, to reduce mortgage fraud and enhance consumer protection.This ultimately reduces the losses to individuals and financial institutions.Mortgage fraud remained elevated in 2010 despite modest improvements in various economic sectors and increased vigilance by financial institutions to mitigate it.

Foreclosures Countrywide Mortgage Fraud

In general there are two types of mortgage fraud: fraud for profit and fraud for housing.Mortgage fraud continues to be one of the fastest growing crimes in the United States and is generally classified.Various data sources, to include the FBI, HUD-OIG, FinCEN, MARI, Interthinx, Fannie Mae, Radian Guaranty, CoreLogic, the U.S. Census, and the U.S. Department of Labor were used in this report to identify geographic fraud trends.A study by the Federal Reserve Bank of Philadelphia reported that low-income households still struggle to access credit. 7 Organizations providing services to these households have seen an increase in demand for their services while trying to meet those demands with cuts in funding.

Industry participants are reporting that short sale fraud schemes continue to be an increasing threat to the mortgage industry.Reverse staging and comparable shopping techniques are currently being used by fraud perpetrators in the commission of short sale frauds.They are also seeing an increased frequency of flipping and straw buyer schemes in FHA loans.Use the equity you already have in your home to lower interest payments on bad debts,.