2007...Where Knowledge is Power in Real Estate

By
Real Estate Broker/Owner with Riede Real Estate, Lic. 01310792

2007YearToday, I would like to introduce you to my guest, Ed Rybczynski formerly with Liberty Title Company in Baltimore where in 2003, Ed pleaded guilty to Federal conspiracy stemming from house flipping and mortgage fraud. Ed served time in Lewisburg Federal Prison Camp. Today,Ed spends his time educating others about fraud and helping Title companies to be proactive with strategies designed to reduce the risks of loss. Ed has served his time and currently consults making others aware of how there must be a change and not status quo…read, devour and become aware so that you are not a victim of fraud in 2007.

 

Real estate fraud is a remarkably complex social issue with a spectrum of costs and consequences that are generally misunderstood. It’s now identified by the FBI as the nation’s fastest growing type of white collar crime. The Treasury Department reports a 35 percent increase in 2006, over 2005, of suspicious activity claims made by lending institutions. Still, the published number of incidents is understated because many crimes remain undiscovered, unrecognized or unreported. The term real estate fraud describes a broad category of crime that loosely includes mortgage fraud, predatory lending, property flipping, postal fraud, identity fraud and bankruptcy fraud.

 

Technology is not without blame for accelerating fraud statistics. All real estate is listed and sold locally, yet lenders and title companies increasingly employ a business model that encourages automated processing from remote locations. Sadly, homes being purchased have become digital images with a stated value while consumers are reduced to faceless ambiguous names on a computer screen. Fraud clearly flourishes when lending and settlement services are anything other than community based. Another contributing factor is the approach taken by state governments when prescribing licensing and continuing education standards for real estate professionals. In April of this year, the Government Accountability Office released a preliminary study of the title industry requested by Congressman Michael Oxley. Surprisingly, 3 states plus the District of Columbia don’t require the licensing of title agents; 18 states and the District of Columbia don’t require title agents to pass a test before licensing; only 20 states have an educational requirement as a pre-requisite to licensing. A similar scenario currently exists for the mortgage banking industry.

 

To read the rest of this artice that Ed Rybczynski has written go to Sacramento Real Estate Voice.

 

 

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Ambassador
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Renée Burrows
Savvy Home Strategies Realty, LLC-REALTOR®-Estate-Probate - Las Vegas, NV
Las Vegas Real Estate Broker - www.urLVhome.com

5*****'s and clapping!  No responses or comments to this yet?  Are you kidding me!

Well written post and great information Gena, THANK YOU!

Jan 02, 2007 08:13 AM #1
Rainmaker
335,268
Ann Cummings
RE/MAX By The Bay - NH and Maine - Portsmouth, NH
Portsmouth NH Homes - Service With a Smile!

Gena - WOW!  What a post full of information, and to know it was written by someone who actually did this and then served the time.  It sounds like Ed came through it all a better person.  A powerful post for those who read it.

Thank you for having Ed as your guest to write this for us.

Ann

Jan 02, 2007 08:56 AM #2
Rainer
453,957
Jacqulyn Richey
Prominent Realty Group - Las Vegas, NV
Las Vegas Real Estate
Great post Gena. I can't believe so many states don't require licensing or even testing, not to mention educational requirements.  And they wonder why fraud is on the rise? -Charles
Jan 02, 2007 03:35 PM #3
Rainmaker
246,193
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Renee, very surprising. The people who have actually look at the post are in the 100's but very few have taken the opportunity to comment. Kind of a strange thing. I think that Ed did a great job and gave some good advice. I would have thought that it would have sparked more interest. THank you for taking the time to read it and commenting.

Ann, I agree that it is a powerful article and I do believe that Ed has found his voice and goals to help educate and change the status quo. I appreciate your input and you are quite welcome.

Jacqulyn and Charles, yes I found that amazing myself...helloooooo perhaps that needs to change. A little licensing, testing and education might be in order in several states! Thanks for the comment.

Jan 02, 2007 06:50 PM #4
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Rainmaker
246,193

Gena Riede

Real Estate Broker - Sacramento CA Real Estate (916) 417-2699
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