Housing.com News, Analysis & Opinion: Mortgage & Loan: Fighting Mortgage Fraud

“These defendants, many of whom were professionals, preyed on vulnerable homeowners facing foreclosure to deceive them out of their home and life savings,” Coakley said in a press statement. “With the number of foreclosures increasing daily, this type of mortgage fraud is particularly troubling.”

HUD Inspector General Kenneth Donohue correctly pinned the explosion in mortgage fraud to a lack of oversight and a willingness to look the other way, and recommended some new steps:

Mortgage bankers have been creating a predictable model on screening some of these loan applications and that’s good thinking. That’s using technology to your advantage. I think FHA has to weigh in on that. I have not seen that.

I've mentioned her before, but Rachel Dollar writes and runs what is probably the best and most comprehensive mortgage fraud site around. If you are a victim of mortgage fraud, or are worried about becoming one, go read that right away to get the answers you need.

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One of the sadder aspects of the housing collapse has been overturning the rock to see how much of the market was infected with mortgage fraud. Many subprime loans were pushed with outright fraudulent terms, and many homeowners have lost their homes to terrible "foreclosure rescue scams" and the like. It's good to see people like Massachusetts AG Martha Coakley taking a strong stand against mortgage fraud as foreclosures ravage the state: “These defendants, many of whom were professionals, preyed on vulnerable homeowners facing foreclosure to deceive them out of their home and life savings,” Coakley said in a press statement. “With the number of foreclosures increasing daily, this type of mortgage fraud is particularly troubling.” HUD Inspector General Kenneth Donohue correctly pinned the explosion in mortgage fraud to a lack of oversight and a willingness to look the other way, and recommended some new steps: What are some of the key changes that need to be made at FHA? Mortgage bankers have been creating a predictable model on screening some of these loan applications and that’s good thinking. That’s using technology to your advantage. I think FHA has to weigh in on that. I have not seen that. Well, let's hope he sees it soon. I've mentioned her before, but Rachel Dollar writes and runs what is probably the best and most comprehensive mortgage fraud site around. If you are a victim of mortgage fraud, or are worried about becoming one, go read that right away to get the answers you need.