Saturday, March 10, 2007

FBI on U.S. Mortgage Fraud: "OK, We're Done Fucking Around"


The FBI is issuing harsh warnings to both mortgage lenders, realtors, property assessors AND potential homedebtors to "stop fucking lying".

After the FBI's report was released last Wednesday describing mortgage fraud in the United States as "pervasive", the FBI's notice informs consumers and lenders that mortgage fraud is punishable by up to 30 years in prison, a $1 million fine, or both.

Are any realtors out there paying attention? What good is that undeserved 6% commission you earned on a 6 figure Orange County home sale, and that huge-ass Hummer parked in your driveway, if you're own ass is parked in prison?

The FBI reported that it investigated 818 mortgage fraud cases in fiscal year 2006 (up from 436 in fiscal 2003), resulting in 263 indictments, 204 convictions, and recoveries of $630 million in restitution and fines. Currently pending cases total 1,014. The FBI estimates that 80% of all reported fraud losses involve collaboration or collusion by industry insiders.

"The increased reliance by both financial institutions and nonfinancial institution lenders on third-party brokers has created opportunities for organized fraud groups, particularly where mortgage industry professionals are involved," the FBI's annual financial crime report says. (source: National Mortgage News).
No shit, Sherlocks.



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