Field Guide to Mortgage Fraud
(Updated June 2007)
Mortgage fraud has mushroomed into one of the fastest-growing white-collar crimes in the country, leaving homebuyers on the hook with overpriced houses -- and leading to higher interest rates for everyone. Learn about the different types of mortgage fraud and discover how to recognize, prevent, and protect yourself from this growing epidemic. (V. Broady, Information Specialist)
National Resources for Reporting Mortgage Fraud and Scams
The Federal Trade Commission (FTC)
600 Pennsylvania Avenue,NW
Washington, D.C. 20580
Identity Theft Clearinghouse: (877)-438-4338.
Consumer Response Center: (877)382-4357
http://www.ftc.gov/ and FTC Identity Theft site
To file a Complaint
While the FTC does not actually resolve an individual consumer's problem, it does investigate mortgage fraud with the aim of leading to law enforcement action. The FTC is especially active regarding homeowner and mortgage 'identity theft'.
Federal Bureau of Investigation (FBI)
935 Pennsylvania Avenue, NW
Washington, D.C. 20535
Phone: 202-324-3000
http://www.fbi.gov/whitecollarcrime.htm
In conjunction with the 'White Collar Crime' department, the FBI investigates mortgage fraud, which often involves many professionals working in collusion: bank loan officers, real estate agents, appraisers, accountants, and mortgage brokers.
Source: Report Mortgage Fraud and Identity Theft
What is Mortgage Fraud? 
Mortgage Fraud: Recognizing the Signs, (National Association of REALTORS®).
Mortgage Fraud: If the deal sounds too good to be true, it probably is, (Columbus Board of REALTORS®, Mar. 2007).
How to spot Mortgage Fraud, (Florida REALTOR® Magazine, Mar. 2007).
How to Recognize Loan Fraud, (About.com, 2006).
Loan Fraud Alert, (REALTOR® Magazine, Dec. 01, 2006).
Shattered Dreams, (Builder, Oct. 2006). Q
MarketWatch: Home is Where the Mortgage Fraud Is, (Wall Street Journal, Apr. 9, 2006). Q
Mortgage Fraud Called 'Growing Epidemic', (REALTOR® Magazine, Feb. 14, 2006).
Mortgage Fraud Operation "Quick Flip", (Federal Bureau of Investigation, Dec. 14, 2005).
Educate Yourself on Mortgage Fraud, (REALTOR® Magazine, Nov. 2005).
Fighting Mortgage Fraud, (Mortgage Banking, Nov. 2005). Q
As Mortgage Fraud Rises, Brokers are Part of the Problem, (USBanker, Oct. 2005). Q
Appraisal Fraud: when property values are over-inflated, (Wisconsin Real Estate Magazine, June 2005).
Identity Thieves Target Growing Home Equity, (Real Estate Journal, 2005).
Mortgage Fraud, (Real Estate Council of Alberta, Apr. 2004).
Impact of Mortgage Fraud
Mortgage Fraud Spreading, Blamed for Housing Bust, (RealtyTimes, May 18, 2007).
Facing the Cost of Mortgage Fraud, (The RMA Journal, Feb. 2007). Q
A Snapshot of Mortgage Fraud, (Community Banker, Feb. 2007). Q
Suspected mortgage fraud rose by 35 percent in 2005, (Mortgage Banking, Jan. 2007). Q
The Bonnie and Clyde of Mortgage Fraud, (Fortune, Nov. 13, 2006). Q
Market Analysis Indicates Mortgage Fraud to Worsen, (Originator Times, Mar. 6, 2006).
The Rise of Mortgage fraud and How it Impacts You, (Federal Bureau of Investigation, Dec. 14, 2005).
Mortgage fraud a burden, (deseretnews.com, July 26, 2005).
Mortgage fraud takes heavy toll, (Computer Crime Research Center, Apr. 21, 2005)
Mortgage Fraud Prevention
Stopping Fraud before it Starts, (Georgia Real Estate Fraud Prevention and Awareness Coalition).
MBA, FBI extend partnership to combat mortgage fraud, (Mortgage Banking, Apr. 2007). Q
The New Battle Against Fraud, (Mortgage Banking, Mar. 2007). Q
How to Spot Mortgage Fraud, (Florida REALTOR® Magazine, Jan. 2007).
Consumer Tips to Protect Against Mortgage Fraud, (National Notary Association, 2006).
Fighting the Good Fight Against Mortgage Fraud, (Mortgage Banking, Aug. 2006). Q
Fraud Prevention Best Practices, (Freddie Mac, Nov. 2005).
Fraud's Last Stop..., (Mortgage Banking, Sept. 2005). Q
How to Avoid Becoming a Mortgage Fraud Victim, (SmartPros.com, Mar. 2005).
Information for Victims and Witnesses who Report Fraud Crimes, (USDOJ, Dec. 28, 2004).
Tips to Protect Against Mortgage Fraud at Closing, (National Notary Association, Oct. 21, 2004).
Useful Websites Prevention
Stop Mortgage Fraud, (Mortgage Bankers Association) - Stopmortgagefraud.com has several features to help you avoid becoming a victim of mortgage fraud or abusive lending.
Annual Credit Report.com - This central site allows you to request a free credit report once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.
Mortgage Fraud Blog - Hosted and maintained by nationally recognized mortgage-fraud expert, Rachel Dollar, this blog delivers the daily buzz on mortgage fraud. Visitors can also learn about what mortgage lenders, real-estate professionals, law-enforcement agencies, legislators and community activists are doing to stop it.
The Office for Victims of Crime (OVC) - The OVC publishes literature on various victim situations, such as "mortgage fraud and identity theft".
Better Business Bureau - The Better Business Bureau aims at resolving complaints and keeping the public informed.
eBooks & Other Resources
eBooks.realtor.org
The following ebooks and digital audiobooks are available to NAR members:
The Art of the Steal, (OverDrive Audio Book)
Credit Smart, (Adobe eReader)
Investigating Identity Theft, (Adobe eReader)
Be Alert, Be Aware, Have a Plan, (Adobe eReader)
The Mortgage Answer Book, (Adobe eReader)
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.
An American Epidemic: Mortgage Fraud-A Serious Business, (New York, NY: iUniverse, Inc., 2005).
Field Guides & More
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