twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.reversefunding.com

subscribe to free Mortgage Daily email newsletter

Mortgage Fraud News | Fraud Statistics | Fraud Index | Fraud Blog
Mortgage broker, originator and banker criminal cases. Real estate flipping and appraisal fraud. Mortgage fraud prevention, studies and analysis.



P R E S S   R E L E A S E

FOR IMMEDIATE RELEASE:

Oct. 20, 2011


Mortgage fraud protection legislation signed into law by governor

LANSING, Mich. - According to the most recent statistics from the FBI, Michigan is one of the top 10 states for mortgage fraud. So it might come as a surprise to homeowners to learn that mortgage fraud is not, strictly speaking, a crime.

Or at least it wasn't until today, when Gov. Rick Snyder signed mortgage fraud protection legislation into law.

"Tougher penalties are needed to protect against scammers who think nothing of bilking unsuspecting homeowners and lenders out of tens of thousands of dollars," Snyder said. "This legislation makes it clear - mortgage fraud will not be tolerated. Try to steal someone's house, go to prison."

Although prosecutors currently have the ability to go after perpetrators of mortgage fraud based on elements of the activity that are already illegal, mortgage fraud itself is not considered a separate crime. This means prosecutors are often forced to go after offenders for lesser crimes such as forgery, but those penalties are considered weak and, because of the complexity involved and time it can take to discover that fraud occurred, cases are often hard to prosecute.

Specifically criminalizing mortgage fraud will give prosecutors the tools they need to better protect homeowners and lenders by making mortgage fraud a felony carrying stiff penalties of up to 20 years in prison and a maximum fine of $500,000. Conviction may also result in forfeiture of property used in connection with a mortgage fraud scam.

One of the most important consumer protection aspects of the new laws is a provision that allows the courts to invalidate fraudulent mortgage documents, which the governor said will ensure mortgage fraud victims are not held liable for criminal activity.

"Honest homeowners and lenders should not be held responsible for the terms of a fraudulent mortgage. This change allows the courts to set things right," Snyder said.

Mortgage fraud can take a number of forms. Fraud for housing usual involves a single borrower acquiring property under false pretenses, such as misrepresenting income information on a loan application, which can result in higher foreclosure rates.

Fraud for profit usually involves complex scams by industry insiders aimed at gaining illicit profits from property sales. Common scams include falsely inflating appraisals, misrepresenting terms of an agreement and in extreme cases, buying or selling property under someone else's name using forged documents.

The legislation, which was supported by both Republican and Democrat lawmakers, clarifies what counts as mortgage fraud and extends the length of time prosecutors have to charge suspects with a crime. With these changes, a person would be guilty of mortgage fraud if they knowingly make false statements or deliberately conceal information during the lending process, conspire to commit fraud or file falsified documents. The legislation, which was supported by both Republican and Democrat lawmakers, clarifies what counts as mortgage fraud and extends the length of time prosecutors have to charge suspects with a crime. With these changes, a person would be guilty of mortgage fraud if they knowingly make false statements or deliberately conceal information during the lending process, conspire to commit fraud or file falsified documents.
  • Senate Bills 249 and 250, sponsored by state Sen. Darwin Booher, are now P.A.s 201 and 202 of 2011.
  • S.B. 251, sponsored by state Sen. Mike Nofs, is now P.A. 203.
  • S.B. 252, sponsored by state Sen. James Marleau, is now P.A. 204.
  • S.B. 43, sponsored by state Sen. Tupac Hunter, is now P.A. 205.
  • House Bill 4462, sponsored by state Rep. Marty Knollenberg, is now Public Act 206 of 2011.
  • H.B. 4478, sponsored by state Rep. Lisa Posthumus-Lyons, is now P.A. 207.
  • H.B. 4492, sponsored by state Rep. Rashida Tlaib, is now P.A. 208.
Detailed descriptions of individual bills may be found online at www.legislature.mi.gov.


Source: Office of the Governor, Rick Snyder

Local Mortgage Fraud news
News about local mortgage fraud.


Logout forgot
password?

Mortgage Fraud Statistics
Government and private data on volume of mortgage fraud activity.



Mortgage Fraud Index
Dollar and index amount by quarter and state.



Mortgage Fraud Litigation
Lawsuits and settlements invoving mortgage fraud by a lender insider. From 2007 through first-quarter 2013



Mortgage Fraud News
News stories about fraud committed against home lenders.



Mortgage Fraud Blog
Actions in mortgage fraud criminal and civil cases.



local mortgage fraud


mortgage fraud links



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

free mortgage news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

sales blog

secondary marketing

social media

servicing news

subprime news

wholesale lenders

wireless mortgage news