Mortgage Fraud Hits A New High (Or Low)
Posted on April 10, 2006
Filed Under Mortgage Updates
MarketWatch has a great article on the latest mortgage fraud and what you can do to protect yourself. Law Enforcement believe that most of these frauds would not be possible without an industry insider leading the way.
Often, the borrower is a willing accomplice, but these schemes, which the FBI calls “fraud for profit” and which account for about 80% of mortgage-fraud cases, usually require the work of an industry insider.“It’s hard to perpetrate fraud-for-profit without some kind of third- party professional being involved, whether an appraiser, loan officer, real estate broker — someone to extract the money from the lending channel,” said Mark Fleming, chief economist with CoreLogic, a firm in Sacramento, Calif., which makes tools for lenders to assess fraud risk.
One of the best advice given, be wary of real estate “experts”.
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