Mortgage Fraud Running Rampant

There is an infestation in the United States today that has nothing to do with rats or roaches or swime flu. This phenomena that appears to be affecting every corner of the country in none other than mortgage fraud.

Six in Dallas sent to federal prison for fraud. Three in Kansas City pled guilty for a $12.6 million conspiracy. Brokers in Minnesota, Detroit and Florida have all been faced with charges and indicted.

This list goes on and on. In face, Certified Mortgage Banker and attorney Rachel Dollar is running  the Mortgage Fraud Blog, reporting new cases nearly every day. And it seems that while we hear of these predators being caught each day, the mortgage crisis continues and it’s the American people, not two-bit fraudulent scammers, who are paying the price.

In this light, Senator Patrick Leahy’s anti-fraud legislation has arrived just in time. Signed into effect by President Obama on Thursday, this bill calls for stronger laws against banker and broker fraud as well as increased resources to pursue these cases. Expanding on current legislation, it will also cover financial organizations that are not insured or directly regulated by the government.

“Government must set the rules of the road that are fair and fairly enforced. Banks and lenders must end the practices that added to this mess,” said President Obama upon signing the bill.

Meanwhile, to protect themselves against fraud, Freddie Mac fraud experts recommend that borrowers beware. To do this, visit the Making Home Affordable website to check the legislation for yourself, and avoid services that make empty promises or utilize documents filled with blank spots or errors.