Some Mortgage Fraud Links

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FBI Press Release

FBI Wants Loan Brokers to Fight Mortgage Fraud
Dec.15, 2005 Tribune
Unlike lenders, mortgage brokers are not required to report questionable transactions to the government, and "I would question whether they're exercising as much due diligence as we would like to see," said Chris Swecker, FBI assistant director in charge of the criminal division.

STEALING HOMES:
April 15, 2006 Detroit Free Press
The scams, step-by-step :Two of the most popular mortgage fraud schemes

FORECLOSURE DEAL
A mortgage company promises to make the overdue mortgage payments to the lender.
In return, the homeowner transfers the property title to the company.
The owner is given a year to buy back the title, but in many cases the company ends up with the home.
The company then can resell it for a profit.
EQUITY SKIMMING
A homeowner needs equity from the house.
An investor may use an independent buyer, false income documents and false credit reports to obtain a mortgage loan in that buyer's name.
The homeowner is deceived into signing over the title of the home, thinking he or she can rent it and then buy it back.
Instead, the independent buyer does not make any mortgage payments and rents the property until foreclosure takes place several months later.
The buyer then gets the equity from the initial loan.
Sources: FBI and the National Consumer Law Center

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