December 16th, 2007
Fraud By Any Other Name Part 1
The FBI reports that fraud is large and growing. Even if the bureau wasn’t telling us that mortgage-fraud-related indictments and convictions are increasing, just about everybody in this industry knows that fraud is a huge problem. Unfortunately, it seems that awareness isn’t helping much.
So, why is mortgage fraud increasing at such a rapid pace? The answer may lie in pressure to get things done. It occurs when loan officers, appraisers, wholesale representatives, or title representatives bend the rules just so they can get a deal done. There is no kingpin masterminding the misrepresentation. There is no intent to revolve equity or to make loans on homes that don’t exist. There is no extra profit or kickback — just a standard fee or commission for the service.