Mortgage Fraud - Finally a message is being sent!!!!

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Mortgage and Lending with Larry Bettag - Cherry Creek Mortgage

Every year we have more regulations, more tests, more certifications.  While I do think that certifications are good, the real issue is the fact that the crooks keep getting away with it.  I have always hated that.  I really do. 

According to today's Chicago Tribune.....TODAY, the Feds came in and busted more than 67 people in Chicago.  The Department of Justice, DOJ, arrested these people for mortgage fraud in a sting called Operation Malicious Mortgage.  They busted mortgage brokers, loan officers, realtors, homebuilders and lawyers......Get this (I can say this b/c I'm a lawyer)...the lawyers now have to hire lawyers to defend themselvses against what they've been charged with. 

Much of the mortgage chaos has been a direct result of this sort of fraud.  Mind you, mortgage companies were stupid in the fact that they couldn't find a reason to deny a loan for a long period of time, but that's a whole another issue.  Borrower's lied and committed fraud to get a home that they knew they couldn't afford, but that's anoterhy whole issue.  But the fraud committed by knowingly deception....that's what this sting was all about.

As a result, it's MY HOPE that the remaining bad guys get scared straight or they get out of the business.  Kudos for D.O.J. doing the right thing here.  The ring fraudulently obtained loans on some 183 homes in Illinois, Nevada and California, authorities said. Lenders lost more than $24 million, officials said.

Authorities targeted three growing scams: lending fraud involving false loan applications and bogus real estate appraisals; foreclosure rescue scams where financially strapped homeowners lose ownership of their properties to criminals; and mortgage-related bankruptcy fraud

Let's hope that the Feds conitinue to press forward and help bring credibility back to our business.  We're in an honorable profession.  People like this give a bad name to all of us who operate with integrity.

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Rainmaker
340,314
Eric Reid
Renaissance Realty Group of Keller Williams Atlanta Partners - Lawrenceville, GA

How do we say .. to little to late with out addressing the real issue... I was so happy to hear this today only to realize .. that it real does not address the issue

Jun 19, 2008 10:16 PM #1
Anonymous
Sue Secondi

I could have been involved in one of Mr. Brown's deal, but ethics kept me from taking the offer which was to good to be true.  It bothered me to the point of sending it to the Attorney General and following up with them, I knew I didn't bite, but as the story unfolds a lot of people did.

Jun 20, 2008 08:21 AM #2
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Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Thanks, Larry. I'm with you. We'll probably see a lot more people arrested, etc. over the next couple of years. It's a healthy cleansing. Have a great day!

 

Paul

Jun 20, 2008 12:41 PM #3
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Pam Dent
Gayle Harvey Real Estate, Inc. - Charlottesville, VA
Realtor - Charlottesville Virginia Homes and Horse Farms

HI Larry - I 'm glad to hear that some are getting what they deserve.  Too many people have been hurt.

Jun 20, 2008 09:57 PM #4
Rainer
74,713
Dan Hartman
Province Mortgage Associates - NMLS #2861 - Providence, RI

Larry,

Great article.  I thought it was pretty impressive when they announced the number of people arrested last week.  But then I met with a client today who had been defrauded of thousands of dollars, and is now in a precarious, possibly unimprovable situation on account of such a fraudulent origination.  I'm glad based on that to see that the government is taking this very seriously. 

Dan

Jun 23, 2008 09:39 PM #5
Rainmaker
353,982
Dale Terry
Yadkinville, NC

Quite frankly, I am not impressed.  T he largest fraudulent place in America is Washington DC.  So the DOJ has to show the force,  I would be more impressed with arrests of congressmen and other elected officials that spend money without the right to do so.  There are plenty of examples that show that the constitution is being broken but these idiots get to break it all the time.   And by the way, I would say what you said to anyone, and I am not a lawyer, just protected by free speech.

Dec 04, 2008 07:38 AM #28
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Larry Bettag

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