Excerpts from an insightful article on Mortgage Fraud including underlying motives of greed by Wall Street Investors
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· " According to one researcher suspected activity reports and formal complaints are expected to increase by an additional 1,000 per cent during the next five years as lenders, investors and foreign government controlled institutional investors bring more pressure to bear on mortgage bankers and brokers who have been involved in the various ways in which mortgage fraud can be accomplished, particularly after a loan has gone into default and pending foreclosure action.
· Refinancing activity is down between 50 to 75% in some markets and more than two dozen mortgage companies and brokers have either gone out of business or laid off thousands of employees in the past few months. Many of those employees have taken it upon themselves to write up what they know and send in anonymous complaints to the FBI, or file them online with the Financial Crimes Task Force which was originally set up to deal with terrorism but which now handles more traffic related to the financial crimes enforcement network than any other form of complaint.
· It is harder to catch mortgage loan fraud if there is no default. No harm no foul as law enforcement is prone to view it. However, when the market turns down as it is doing now, an increasing number of fraudulent transactions come to light when borrowers are unable to explain why their income went from a stated amount of $20,000 per month to less than $5,000 within a short span of 90 to 180 days.”
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Respectfully submitted by
1804 Cross Bend, Plano Texas 75023