In April 2012, Mortgage Daily released a press update highlighting how law enforcement was cracking down on mortgage fraud schemes across the United States. Investigators announced charges and convictions against people accused of running foreclosure rescue scams, submitting false loan applications, arranging straw buyer transactions and stealing identities to obtain mortgages.
These cases underscored the breadth of fraudulent activity that emerged from the housing boom and subsequent bust. Prosecutors said victims included homeowners facing foreclosure and lenders left with bad loans. Regulators warned borrowers to be wary of anyone guaranteeing a quick fix for mortgage problems or promising unusually low rates.
Key takeaways:
– Federal and state agencies worked together to pursue foreclosure rescue scams.
– Straw buyer schemes involved recruiting people to obtain loans under false pretenses.
– Some defendants used stolen identities to take out mortgages on unsuspecting homeowners’ properties.
– Authorities urged borrowers to contact their lenders or HUD-approved counselors rather than pay upfront fees to rescue companies.
For ongoing coverage of mortgage fraud and enforcement efforts, visit our Mortgage Fraud Index and Mortgage Fraud Enforcement Index resources.
