Thursday, November 03, 2005

Will Fraud Create Slew Of Repos?

Inman News reports that fraudsters have a wide open target. "Residential mortgage fraud will cost communities nationwide an estimated $653 million in 2005.. an FBI agent said at a Colorado mortgage fraud summit."

"There are generally two types of fraud cases, FBI agent Dan Bradley said, with the first involving borrowers who intend to live in their houses. These types of fraud represent about 20 percent of cases and are generally low on the FBI's list of priorities."

"The second group of mortgage fraud cases involves industry professionals, and in some cases, the borrowers are completely unaware of the scheme, media accounts said. Agent Bradley called the schemes 'for profit' schemes, where the goal is to make money, not necessarily to provide housing for the borrower."

"Bradley said. 'It takes 24 months to investigate most of these cases and the majority of the cases that were open three years ago are still open today,' the agent said."

"'Because there is no regulation of the industry, the only hammer we have is criminal prosecution,' Bradley said."


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