Washington, D.C. (Source: FBI) – Today the FBI and the Mortgage Bankers Association (MBA) entered into an agreement to combat Mortgage Fraud. The FBI and the MBA will make available a Mortgage Fraud Warning Notice as a proactive means of educating consumers and mortgage-lending professionals of the penalties and consequences of this criminal activity.“Mortgage Fraud is clearly becoming a problem that requires the unified efforts of law enforcement, regulators, and industry,” said Karen Spangenberg, Section Chief of the Financial Crimes Section, Criminal Investigative Division, who signed on behalf of the FBI. “The FBI is pleased to have worked with the Mortgage Bankers Association in the development and distribution of this advisory as we continue to strengthen our relationship with such key organizations to combat Mortgage Fraud.”
Mortgage Fraud Suspicious Activity Reports (SARs) referred to law enforcement by financial institutions increased from 17,127 SARs in Fiscal Year 2004 to 35,617 SARs in Fiscal Year 2006, reflecting estimated losses of $946 million. FBI Mortgage Fraud investigations have focused on large-scale frauds perpetrated by organized crime and industry insiders, including attorneys, brokers, appraisers, and realtors. Since September 2002, the number and types of investigations have increased from 436 to 1,036. Of these current cases, 51% involve expected losses in excess of $1 million, and 57% involve our federally insured financial institutions as victims.
Combatting significant fraud in this area is a priority, because mortgage lending and the housing market have a significant overall effect on the nation’s economy. The FBI works closely with national associations such as the MBA, as well as with individual lenders, in a continual effort to define and combat the growing Mortgage Fraud problem. The newly developed Mortgage Fraud Warning Notice enhances the FBI’s endeavors to do so by putting potential perpetrators on notice in an effort to stop potential crime before it is committed.
“We wish to thank the FBI for working with us to provide mortgage lenders another item in the toolbox to help combat fraud against lenders,” said John M. Robbins, CMB, Chairman of the Mortgage Bankers Association. “Fraud against lenders costs the mortgage industry billions of dollars each year, affecting everyone in the mortgage process, including consumers and the communities we are trying to help build.”
Source: FBI
And who is protecting the borrowers for the pretender lenders???? NOT the FBI as they are part of the problem as is many areas of our “For the People” government.Can you see a cycle here and the general public is not even considered when it comes to fraud, the banks are and have been steadily sending this country DOWN THE DRAIN!!!! This post is a prime example… Really now!!!!!
1ofthemany(Quote) (Reply)
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Well, I hope that in light of recent events, the scams and with the truth out there for everyone to research, that the consumer will have a half a brain to protect themselves.
What humans need to understand is that Capitalism is really just a predator based economy that uses money and trade to prey on one another. We are all players in this deadly game. Some are just smarter (banks) or more moral than others (me).
The FBI is not the problem, it is the human, AKA the consumer with the problem and that problem is called ignorance. If consumers were not so ignorant, we would not have banks taking advantage of this human weakness.
Fiat Lux!
Moe Bedard(Quote) (Reply)
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Well, isn’t this cozy! The FBI doesn’t have time to review the criminal activities of FDIC insured bankers, but we’ve got time to enter a partnership with the Mortgage Bankers Association. I’d like to think that this is evidence of “keeping your friends close and your enemies closer,” but I’m more realistic than that! If this country ever expects an economic recovery, the Feds must stop “sleeping with the enemy!” Let’s turn our attention to supporting the American public with predatory lending laws and stop these sociopaths!
C. Lynne Clawson-Day(Quote) (Reply)
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Do you have actual evidence of a crime by these bankers? If you do, forward it to the FBI. NO ONE is immune to the rule of law, but some crooks are smarter than the average scammer in order to not get caught. However, if they do not personally pay by man made laws, they will eventually pay with the divine laws of cause and effect. AKA Karma…..
What I suggest that consumers get financially educated and learn loan and consumer wisdom to solve the current problem that we face now is just really “buyer ignorance” and nothing more. If there weren’t so many unknowledgeabe and unwise consumers so eager to buy these fraudulent products, then there would be no scams or what you call criminal bankers.
Hence, no need for the FBI’s white collar crime unit and or even this comment you left.
Let’s turn our attention to stop enabling the victims who have sewn their own financial graves by not being educated and always acting like a blameless victim. They buy a product they know nothing about because often they want to gain something material or for their own selfish reasons. Then when the product blows up or turns out to be snake oil, they cry bloody murder and go on the internet yelling from website roof tops that they have been duped or scammed.
NO, they failed to use their brain and thus deserve the fate they now live because of their failure to think and learn.
Instead of enabling these ignorant people, lets teach them through their current self made financial pain that their ignorance is the cause of our Main Street’s problems and until we fix the ignorant people on Main Street, then these scams or frauds will just continue and morph into something new.
Please do not get me wrong, I am here and have been here for the last 4 years trying to teach homeowners and loan shoppers in order to get educated so they do not get ripped off. But at the same time, we need to call a spade a spade and a lemon a lemon in order to move forward as a society and to speak the truth.
Sometimes that truth hurts, but it is still the truth……….
God Bless!
Moe
Moe Bedard(Quote) (Reply)
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