For most of us, our homes are our largest investment we will ever make. We want to make sure the value of the investment remains secure. The good news is we can improve markets by reducing mortgage fraud.
That desire for security in investment can motivate borrowers and professionals to commit fraud. Some motivations include:
-Fraud committed by borrowers who, often with the assistance of loan officers or other lender personnel, misrepresent or omit relevant details with the goal of obtaining or maintaining real estate ownership.
-Fraud for profit is committed by industry professionals who misstate, misrepresent or omit relevant details with the goal of maximizing profits on a loan transaction. Builders, real estate agents, appraisers, property inspectors, insurance agents, title companies, attorneys, or escrow agents may commit fraud.
In order to reduce mortgage fraud, investors should set realistic financial goals. Lending agencies and other businesses involved in this system need to be held to a higher standard with accountability with peers in similar organizations. Always proceed with caution when dealing with anyone offering to help you modify your mortgage to avoid foreclosure. It’s good to keep in mind that you do not need a third party to work with your lender. Always report suspicious activity to relevant federal agencies. The Federal Trade Commission and your state and local consumer protection agencies can help assist you in avoiding mortgage scams.
There is no shortage of legislation at the local, state or federal level used to reduce mortgage fraud. Call Richard Grossman’s office to discuss your mortgage fraud questions.