"Mortgage fraud remained prevalent in 2010 despite national efforts to crack down on perpetrators — many of whom have ties to organized crime, according to the FBI.
The bureau cited data from CoreLogic (CLGX: 9.11 -2.88%), which suggests $10 billion in loans originated last year were based on fraudulent application data.
The schemes cited by federal authorities run the gamut, with frauds involving loan origination, foreclosure-rescue initiatives and short sales.
Fraud also is occurring when parties are engaged in property flipping, loan modifications, equity skimming, builder bailouts, reverse mortgages, and title and escrow deals.
The FBI said professionals working in the mortgage industry were involved in many of the cases, with organized crime playing a significant role.
"There have been numerous instances in which various organized criminal groups were involved in mortgage fraud activity. Asian, Balkan, Armenian, La Cosa Nostra, Russian and Eurasian organized crime groups have been linked to various mortgage fraud schemes, such as short sale fraud and loan origination schemes," the FBI said.
Many of the perpetrators are using past experiences in banking and mortgage-related industries to engage in the schemes..."
at http://www.housingwire.com/2011/08/12/mortgage-fraud-remains-prevalent-organized-crime-involved-fbi?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29
The bureau cited data from CoreLogic (CLGX: 9.11 -2.88%), which suggests $10 billion in loans originated last year were based on fraudulent application data.
The schemes cited by federal authorities run the gamut, with frauds involving loan origination, foreclosure-rescue initiatives and short sales.
Fraud also is occurring when parties are engaged in property flipping, loan modifications, equity skimming, builder bailouts, reverse mortgages, and title and escrow deals.
The FBI said professionals working in the mortgage industry were involved in many of the cases, with organized crime playing a significant role.
"There have been numerous instances in which various organized criminal groups were involved in mortgage fraud activity. Asian, Balkan, Armenian, La Cosa Nostra, Russian and Eurasian organized crime groups have been linked to various mortgage fraud schemes, such as short sale fraud and loan origination schemes," the FBI said.
Many of the perpetrators are using past experiences in banking and mortgage-related industries to engage in the schemes..."
at http://www.housingwire.com/2011/08/12/mortgage-fraud-remains-prevalent-organized-crime-involved-fbi?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29
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