Despite government efforts, FBI says no let up in mortgage fraud

[alp227]

Source: CNN

Washington (CNN) -- Despite aggressive law enforcement efforts, stricter government regulations and tighter borrowing standards, mortgage fraud "remains elevated," and may be getting worse, the FBI said Friday.

While top officials admitted they didn't want to sound "alarmist," they acknowledged the distressed housing market, bleak unemployment picture and weak economy continue to provide fertile ground for fraud in the mortgage industry.

"It could get worse," said Deputy Assistant FBI Director David Cardona, who oversees the FBI's financial crimes units. "There could be more victims," he said.

Cardona's team of agents and analysts released a report for 2010 showing the number of pending FBI mortgage fraud cases increased 12% from the previous year -- from 2,794 to 3,129.

Read more: http://www.cnn.com/2011/US/08/12/mortgage.fraud/index.html

[neoconn]

1. Hmmmm.........Say what???

[DeSwiss]

2. This'll stop it.

- K&R

[neoconn]

3. Where is the sarcasm emoticon?

[No Elephants]

4. Yet, we're looking at giving them immunity for losing paperwork, not complying with foreclosure laws

or contract provisions.

And we've recently nominated a guy who does not inspire trust to replace Warren as head of the financial consumer protection agency.

Sounds about right.

[PSPS]

10. Did you read the article? This is about fraud against the banks.

The perpetrators were primarily mortgage brokers and other insiders involved with loan originations. A growing number of the cases involved fraudulent documents that falsified the finances of potential buyers. The FBI said those documents were becoming increasingly more difficult to identify because of sophisticated fraudulent methods.

In other words, a new version of the liar's loan.

[JDPriestly]

12. Exactly. And the banks did not check the mortgage brokers

who were perpetrating the fraud.

This is precisely the problem.

When we got our loan way back when, we had to run the gauntlet with pay stubs, tax returns, etc. for two years.

This was simply a grab by mortgage brokers -- who submitted the loans to their bosses and then to the banks for approval. It's a process and there was a break-down at every level.

[IthinkThereforeIAM]

18. Yep...

... way back in 1988 when I bought my first house at 25 years old, my real estate agent took the mortgage broker out to lunch to convince him that I was a worthy risk, I had money for the down payment and closing costs, title insurance, etc... but we had to fight to get my loan approved. I lived in that 4 bedroom ranch style home for 10 years before selling it for nearly twice as much as the original purchase price. Sorry to ramble but I am just reinforcing JDPriestly's point.

PS: I was actually ahead of schedule on my payments to the principle at the time of sale!

[midnight]

5. I thought the consumer protection agency that Elizabeth Warren

put together was suppose to shepard the HAMP program.? I wonder how that guy is doing who replaced her? It could get worse, and all the efforts have tooth less meaning....

[No Elephants]

7. Is he even on the job yet, or is he awaiting appointment before he starts?

Did you happen to catch th3 recent Daily Show bit about the Dodd Frank bill in which John Oliver portrayed the bill itself?

It's probably on the net somewhere.

Be warned: You will not know whether to cry of ROLFLYAOPIYP (roll on the floor, laughing your ass off, peeing in your pants). Either way, you'll probably want to have something absorbent handy.

[dixiegrrrrl]

13. You are right. When I saw it, I laffed so hard a tear ran down my leg.

[Proletariatprincess]

6. White color crime goes unpunished in the USA.

...it's the Capitalist way.

[The Backlash Cometh]

8. I hope the national news picks this one up: Florida AG is fraught with scandal

It began with the firing of two women who were having an impact on foreclosure fraud, and now it's turned into a huge scandal as a third person left the AG's Office and wrote a 16 page document revealing the conflicts of interest in the AG Office.

TALLAHASSEE – Eight months after she took office as a first-time elected official, Attorney General Pam Bondi is facing a management crisis replete with allegations of old-fashioned political interference in cases and a revolving door between lawyers and the companies they investigate.

An outside investigator is looking into the circumstances surrounding the May firings of foreclosure fraud investigators June Clarkson and Theresa Edwards. This week, another investigator abruptly resigned after giving the media a 16-page memo noting that two other high-profile lawyers in the attorney general's office had taken jobs with companies under investigation, and accusing top management of interfering in an investigation of a prominent Tampa car dealership.

But the worst development for Bondi may be that the 10 active cases her office is investigating have been left in legal limbo, thanks to a court ruling earlier this year that has effectively curtailed her power to use the state's Deceptive and Unfair Trade Practices Act to investigate businesses engaging in foreclosure fraud.

Peter Antonacci, a former statewide prosecutor and deputy attorney general under Bob Butterworth who now represents two firms under investigation for foreclosure fraud, said the effect of the ruling could be devastating to Bondi's office, adding that "perhaps 90 percent of the work they do in the consumer protection area relies on" the unfair trade practices law.



http://www.orlandosentinel.com/news/politics/os-foreclosure-firings-fallout-20110812,0,4477339.story

[russspeakeasy]

14. I don't trust any investigation that is going on in this state.

Until I see 22 of these Florida teabagger politicians doing a perp walk, I will know I am right.

IMPEACH RICK SCOTT...::puke:

[banned from Kos]

9. the FBI is talking about fraud AGAINST the banks

by brokers/homebuyers.

[sendero]

11. We understand that..

.. but understand this --- there is plenty of evidence to suggest that back in 2005-2007 there was a lot of this and the BANKS DID NOT CARE THEY WERE MAKING MONEY ANYWAY.

That may be different NOW but old habits die hard.

[TiberiusB]

15. Let me translate

Although several ethnic criminal groups within the U.S. have been attracted to mortgage fraud as a way to make a fast dollar, the FBI says there is no evidence of any international involvement with the U.S.-based organized crime groups engaged in the fraud.

So let's review, shall we?

-Banks aren't the villains, they're the victims (who get free bailouts)...

-"Ethnic" people may be involved ...

-Don't worry, scary foreign people aren't involved...as far as we know...

Nice work, CNN.

[valerief]

16. Free market! nt

[dogmoma56]

17. wells fargo is sticking it to us...