Property Market Issue – Mortgage Fraud
Mortgage fraud might continue to plague the real estate business. Maybe, I am seeing just the 20% Fraud for Property/Housing, as defined from The Federal Bureau of Investigations.

Explanations why mortgage fraud may continue:

1) The growing cost of housing and the ‘American Dream’ of owning your house.

2) Licensing for real estate professionals and mortgage brokers is a lot too easy. The requirements for licensing have to require a higher level of education, more than a high school degree as a pre-requisite for licensing and harder licensing requirements, including more pre-licensing education and harder tests. This can lead to less people and people entering the property profession.

3) Lenders should offer less loan programs, as an example, reported income loans (some make reference to this as inflated income loans) and no document (no loans).

4) Most lenders demand an IRS (Internal Revenue Service) Form 4506 at time of closing. Today, there is something that an underwriter or lender may obtain data and end an inflated (a.k.a. stated) money mortgage software dead in its tracks. How is it possible that they’d lie on their mortgage application, if they lie on their income tax get back?

5) Insufficient educational programs in the real estate career to identify mortgage fraud – might be wishful thinking, because of the Privacy Act – but at the least a start. Where professional and individuals may report suspected mortgage fraud situations to the appropriate law-enforcement authorities. Get more on our favorite related portfolio – Browse this link: jiu jitsu on-line.

6) The credit-reporting and rating system requires an overhaul. Too usually, I find errors on credit history, where in fact the lender is not reporting appropriate or correctly information. As an example, a customer completed entirely his collection activity in-the later part of February ‘august. The collection agency in-the later part of April continues to be showing a portion of the bill as excellent with a current date. Yes, they described the transaction, but didn’t take away the flexible portion of the total amount.

7) Lack of control points within the existing system.

What might be done to reduce the mortgage fraud:

1) More checks and balances with-in the system to recognize potential mortgage fraud situations.

2) More education for all real estate professionals – real estate brokers, REALTORS, underwriters, lenders, etc.

3) Greater licensing requirements for many. And licensing needs where no licensing is required at this time.

4) Implementation of the ‘whistle blower’ safety system and telephone hotline.

5) Proactive preventative action on-the part of creditors. This influential bjj essay has limitless pictorial warnings for where to allow for it.

6) Enforcement of Section IX – ‘ACKNOWLEDGEMENT AND AGREEMENT’ located on page 3 of the Uniform Residential Loan Application (FNMA 1003 ):

‘Each of the undersigned particularly presents to Lender and to Lender’s actual or potential agents, brokers, processors, lawyers, insurers, servicers, successors and assigns and agrees and acknowledges that: (1) the information presented in this application is true and right as of the time established opposite my signature and that any intentional or negligent misrepresentation of this information within this application may result in civil liability, including financial damages, to any person who may suffer any loss due to reliance upon any misrepresentation that I’ve built on this application, and/or in criminal charges including, although not limited by, fine or imprisonment or both underneath the provisions of Title 18, United States Code, Sec. 1001, et seq.;..7) the Lender and its agents, brokers, insurers, servicers, successors and assigns may repeatedly depend on the information contained in the application, and I am compelled to amend and/or complement the information presented in this application if any of the material facts that I have represented herein should change just before closing of the Loan;..’

7) Enforcement of the lines from your standard mortgage, which guide the borrower’s loan application and speed clauses: Borrower’s Loan Application. Customer will be in default if, during the Loan application process, Borrower or any individuals or entities performing at the direction of the Borrower or with Borrower’s knowledge or consent gave materially fake, misleading, or inaccurate information or statements to the Lender (or failed to provide Lender with material information) in connection with the Loan. Substance representations include, but aren’t limited to, representations regarding Borrower’s occupancy of the Home as Borrower’s principal residence.

Acceleration; Treatments. Bank shall give notice to Borrower previous to acceleration following Borrower’s breach of any covenant or contract in this Security Instrument..( d) that failure to cure the default on or before the time specified in the notice may result in acceleration of the sums secured by this Security Instrument, foreclosure by judicial proceeding and sale of the Home.

8) Better and perhaps needed education of prospective consumers, to allow them to identify situations and recognize the influence.

Implementation of no 6 above will send shock waves in-to the communities and cause the less desirable professionals from business and recognition to individuals. Many might claim that this will soon be costly to the entire economy or creditors if foreclosure proceedings are needed, in the long run there might substantial savings for all.

In conclusion, mortgage fraud may possibly continue, until such time that the losses reach greater levels until there’s an aggressive preventative over all program to curb it. Old nation saying ‘that you do not shut the entrance following the horse leaves the corral.’.