Tag Archives: mortgage fraud

Fraud in the Loan Modification Industry

“All those people who did unconscionable things to people with the subprime and predatory lending…they’re making their living now in these mortgage modification scams,” says Shanna Smith, CEO of the National Fair Housing Alliance (NFHA), a consortium of more than 220 private, nonā€profit fair housing organizations. The following findings were mentioned in the video below regarding ‘fraudsters’:

  • 55% required an upfront fee to start work
  • 43% guaranteed or promised they could secure a loan modification before reviewing documents
  • 24% advised or encouraged homeowners to stop making their mortgage payments or to stop contacting their lenders
  • 12% discouraged homeowners from seeking free help from government-approved housing counseling agencies

Source: Yahoo! Daily Ticker

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Mortgage Paperwork Nightmares

In the video below, banks have used fake documents and fake signatures to process mortgage documents. People were hired to act as officers of large banks (for only $10 per hour!). The main problem here is homeowners are fighting back which will slow down the process and delay the market correction.

http://www.ritholtz.com/blog/2011/04/60-minutes-the-next-housing-shock/

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Banks Slow Foreclosures

“The decrease in foreclosure activity, RealtyTrac says, is likely due to a slowdown in filings because of various lawsuits regarding improper foreclosures by the banking industry. If anything, the legal holdups are probably just dragging out the process and will prolong any real estate resurgence.”

http://cosmos.bcst.yahoo.com/up/fop/embedflv/swf/fop_wrapper.swf?id=24476849&autoStart=0&prepanelEnable=1&infopanelEnable=1&carouselEnable=0

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