Mortgage Fraud

Quarterly MARI Report

MARI has released their quarterly report on mortgage fraud. Scan the PDF here.
What systems did your company have in place to detect mortgage fraud during the bubble run-up of the past several years?
What systems does your company have in place today?
If a loan processor spots potential fraud taking place by an LO at your company, […]

18Sep2008 | mf | 40 comments | Continued

From CR: Fraud in the 2008 Vintage

From Calculated Risk:

If you haven’t yet had a chance to read this article by John Gittelsohn in the Orange County Register about a real estate sale that was financed by Wells Fargo in January of this year, please do so now. And if you were, like most people, working on the assumption that lenders and […]

16Sep2008 | mf | 39 comments | Continued

Over One Thousand Felons Originating in Florida

The Miami Herald has complete a thorough and frightening investigation into rampant mortgage fraud taking place in Florida. They found that over 1000 convicted felons obtained a loan originator license, even after submitting background checks to the state in order to receive their license. 
The Herald has a full website devoted to their investigation located here.
What’s […]

16Sep2008 | mf | 38 comments | Continued

Mortgage Fraud Part 3: Recent Developments

Before we use to rely on automated underwriting systems and credit scores we had humans who would carefully underwrite mortgage loan files. During the caveman human underwriter days, loan originators and loan processors knew that underwriters could make or break a file. An underwriter had god-like power to grant or deny the American dream. They […]

16Sep2008 | mf | 43 comments | Continued

Mortgage Fraud Part 2: Case Studies

We’re lucky to be living far, far away from the mortgage fraud happening in other parts of the United States, right?  Not so fast. In part two of this three part series, we’ll take a look at some mortgage fraud cases in Washington State.
Case Study: Century Mortgage; How to succeed in a down market and earn six […]

16Sep2008 | mf | 41 comments | Continued

Mortgage Fraud Part 1

Fraud is generally defined as the “intentional misrepresentation of the truth in order to deceive another.” Chris Swecker, Assistant Director of the FBI’s Criminal Investigative Division, defines mortgage fraud as any form of material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan.
Before 9/11, mortgage fraud […]

16Sep2008 | mf | 36 comments | Continued

Mortgage Fraud 2008: Bellevue

This story is from the Seattle Times. A federal indictment has been issued for a Bellevue loan officer and his assistant. 
A former loan officer at a Bellevue mortgage company and his assistant have been indicted on a charge of conspiracy to commit wire fraud in a scheme that prosecutors say involved using straw buyers to purchase […]

16Sep2008 | mf | 41 comments | Continued