Mortgage Fraud Prosecution Activity Up
Federal, state and local prosecutors picked up the quarterly pace of activity in mortgage fraud cases -- though actions were still low based on standards established since the financial crisis.
At 880, the Mortgage Fraud Index for the first quarter increased 16 percent from the fourth quarter of last year. The index reflects prosecution activity in cases where defendants are accused of deceiving mortgage lenders.
The index, which is determined utilizing both the number of cases and the dollar amount of each case, has tumbled by nearly a quarter from the same period during 2012.
Hard Money Lender Charged
Criminal charges have been filed in federal court against a Washington man who allegedly used hard money lending practices and mortgage fraud to acquire residential properties.
Different Drivers for Elevated Mortgage Fraud Risk in CA, FL
Potential identity fraud and income fraud have placed California at an elevated risk of mortgage fraud. In Florida, lenders face more risk of being deceived about occupancy and home values.
134 Events Scheduled for Next 6 Months
Topics to be covered at upcoming conferences include mortgage field services, mortgage fraud and mortgage technology. Presentations will be made by some fast-growing mortgage firms during an upcoming mortgage investor conference. More than 130 industry events are scheduled during the next six months.
Mortgage Crimes Prosecuted
Many mortgage-related crimes are committed by people who don't necessarily work for a mortgage lender -- though it is often the mortgage firm that takes the hit. Defendants include attorneys, investment bankers and real estate investors.
More Bank Executives Headed to Prison
Whoever said that nobody has gone to jail for causing the financial crisis hasn't been following the numerous criminal cases against former executives of failed banks. Defendants are accused of a range of crimes including mortgage fraud, embezzlement and accounting fraud.
Mortgage Fraud SARs Filings Fall
The number of reports filed by banks and credit unions that suspect mortgage fraud slid more than a quarter last year. Also lower were the number of instances involving appraisal insiders.
Wholesaler Wins Appeal in Mortgage Fraud Case
A California appeals court has ruled in favor of a wholesale lender that was a victim of mortgage fraud. At issue was the settlement agent's failure to advise the lender of an unauthorized disbursement.
Mixed Outlook for Ability to Repay Rule
While the ability-to-repay rule will eliminate risky loans that were so prominent during the housing boom, the rule could keep even more consumers from qualifying for mortgages.
Decline in Possible Mortgage Fraud
The possibility of mortgage fraud on new loan originations took a turn for the better. But several metropolitan areas including San Francisco experienced deterioration.