Category : Mortgage Fraud
Litigation related to mortgages hit a three-year high during the first quarter of 2010, according to a joint study issued jointly by Patton Boggs and MortgageDaily.com.
According to Patrick McManemin, a partner in Patton Boggs’ Dallas office, the early cases from a few years ago when the subprime mortgage crisis began involved borrowers and the lenders who held those loans. Now, it’s the institutions that purchased loans from originating lenders who are involved in litigation.
Patrick McManemin is one of the partners in Patton Boggs’ Dallas office.
The current loan-holding institutions are trying to figure out how they can obligate the sellers to repurchase the loans.
According to Massachusetts Attorney General Martha Coakley, Morgan Stanley financed mortgages in Massachusetts issued by the defunct subprime lender New Century Financial Corp., and that Morgan Stanley “knew or should have known (they) were destined to fail.”
Coakley just announced that Morgan Stanley would pay a $102 million settlement for its “role in the securitization and financing of Massachusetts subprime loans.”
The Justice Department has opened a criminal investigation of Goldman Sachs regarding mortgage securities deals it arranged.
In an election year, you can be sure that politicians will step up the pressure against companies like Goldman Sachs, whose suspect financial practices have contributed to the financial crisis that has plunged the U.S. into the most severe recession since the Great Depression.
The Securities and Exchange Commission has alleged that Goldman Sachs misled investors by not to tell them subprime mortgage securities had been chosen with help from a Goldman hedge fund client, Paulson & Co., which was betting the investments would fail.
If you have been struggling with a subprime loan in these tough economic times, or are simply in over your head due to financial hardship, you may want to consider consulting with an experienced real estate attorney.
http://news.lp.findlaw.com/ap/f/1310/04-30-2010/20100430010511_23.html
Mortgage fraud is a huge problem. The problem is so far reaching in fact, that the FBI says it costs us at a minimum $4 billion dollars a year. According to Google, the population of the United States in July 2008 was 304,059,724.
Some interesting financial facts when you use those numbers:
- It would cost each person in the US $13.15 a year.
- It costs the US 10,958,904 per day
- That means it costs us over $70 million a week!
If we used the money that mortgage fraud costs us to purchase housing for low income, homeless, and/or disabled Americans, and the house cost $150,000; an amazing 26,667 people would have housing.
Imagine what that kind of boost could do for the economy!
Real Estate law is complicated and can vary from state to state. It is important to speak with an attorney who specializes in real estate law before making any hasty decisions. Whether you are a homeowner, landlord, or tenant, Whocanisue.com can help you find an experienced real estate lawyer or bankruptcy attorney in your area.
Everyday more and more headlines are talking about the startling increase of mortgage fraud across the US.
The FBI defines mortgage fraud as “any material misstatement, misrepresentation or omission relied upon by an underwriter or lender to fund, purchase or insure a loan.”
There are many ways to perpetuate these scams, but one popular method is employment fraud. There are usually two ways the buyer alone or with the help of a real estate/mortgage professional accomplishes this income misrepresentation:
- States self-employment in a non-existent company
- Reports having a higher position within the company he/she works to inflate income
The result is that the buyer qualifies for a higher loan than he/she normally would and because the income really isn’t sufficient for the amount of the loan, default occurs and the home usually goes into foreclosure.
Has a home foreclosure scam saddled you with a worse loan or swindled you out of the title to your property? As bank foreclosure rates rise, so do the number of criminals taking advantage of homeowners. If you suspect a bogus offer to refinance your home or make a loan adjustment, report it to comptroller of currency’s office (OCC). If you signed a questionable mortgage agreement or transferred your home title, contact a real estate attorney immediately.
A real estate lawyer can detect any unlawful language and determine whether your loan or title arrangement is valid. If you act within three days of an agreement, your right to rescind the contract may free you from obligation.
Whocanisue.com can help you find an experienced real estate lawyer in your area.
Home mortgages in danger of bank foreclosure may or may not be eligible for new federal loan modification programs. Criteria include date of the loan, principal balances under $729,750, and mortgagee financial hardship, such as job loss. If none of these details match your circumstances but you are still having trouble making monthly mortgage payments, review your current loan documents with a real estate lawyer.
Image by: pnwra
By Truth in Lending law, mortgage information must be presented in a certain format. Any slight deviation, omission or misstatement can invalidate the loan agreement. A real estate attorney can file a mortgage fraud claim with the court to save you from home foreclosure.
Because real estate law is complicated and often varies from state to state, it is important to speak with an attorney who specializes in real estate law before making any decisions. Whocanisue.com can help you find an experienced lawyer in your area.
According to the Mortgage Fraud Reporter, the Associated Press broadcast that Dorie DiMarca, 50, of Andover, Massachusetts has been indicted for completing appraisals on numerous properties in New Hampshire and Massachusetts without the proper appraiser’s license.
This particular report and the Department of Justice press release, state that Ms. DiMarca provided the appraisals for 22 properties in those states. The indictment alleges that Ms. DiMarca represented herself as a licensed appraiser when she, in fact, was not licensed and did not have the proper authority to conduct those appraisals.
Ms. DiMarca has also recently been charged with two counts of wire fraud in connection to her appraisal fraud. She faces up to 20 years in prison but due to federal guidelines, if convicted will most likely serve between 4 -10 months.
This is just but one instance in the sea of thousands of mortgage fraud cases across the United States.
Learn more about mortgage fraud attorneys at our library.
The U.S. Senate and House of Representatives recently passed the Fraud Enforcement and Recovery Act of 2009 (FERA), a law designed to build on the federal offensive battle against mortgage fraud. This crime and related fraud against lenders, the U.S. Department of Housing and Urban Development and property owners across the country is having a severe effect on the already unsound economy.
Mortgage fraud claims have risen 682% in 5 years and a staggering 2800% over the past 10 years. FERA allocations will fund stepped-up investigations at the state and federal levels. The bill was endorsed broadly by attorneys, police and federal agencies.
Are there bank foreclosure loopholes that might let you keep your home?
Ask a real estate attorney they are trained to spot errors on your loan documents, specifically violations of the Truth in Lending Act (TILA). With so much competition for consumers credit dollars, many home mortgage companies pay less than strict attention to U.S. TILA requirements.
TILA requires full and uniform disclosure of the:
- Amount financed
- Finance charge
- Total payments
- Annual percentage interest rate
For tips on how to avoid foreclosure visit the real estate section of our library.
Mortgage-fraud cases based on appraisal and loan scams can entangle innocent homeowners in legal traps. Could you be charged with a real estate crime? Ordinary buyers and sellers are at risk, but warning signs do exist.
Hard-Sell Agents
Sell property at your own pace. If a real estate agent promises you an astronomical price, especially if you aren’t planning to sell, ask to see the agent’s recent sales history.
Suspicious Appraisals
Your home is your castle, but it may not be worth as much as one. If your real estate professional insists on the word of a single appraiser, get a second opinion.
If you have questions regarding a suspicious real estate transaction, you should contact a real estate attorney in your area. Get started by completing our short questionnaire.
