MORTGAGE FRAUD FACT SHEET for Victims
MORTGAGE FRAUD FACT SHEET For Victims NATIONAL CRIME PREVENTION COUNCIL Introduction various resources available to assist victims. Mortgage fraud is a crime that hurts homeowners, families, communities, businesses, and the What Is Mortgage Fraud? economy. According to the FBI’s 2010 Mortgage Fraud Report Year The FBI describes mortgage fraud in Review (August 2011), mortgage as the employment of “some fraud schemes continue to escalate. type of material misstatement, Although new laws and protections misrepresentation, or omission have been enacted to address these relating to a real estate transaction, scams, mortgage fraud schemes which is relied on by one or more have been particularly resilient and parties to the transaction.” Mortgage have adapted to economic changes fraud schemes are varied, but and modifications in lending include practices. While total losses directly attributable to mortgage fraud are 77 Foreclosure rescue schemes unknown, there is no doubt actual 77 Loan modification schemes damages are significant. CoreLogic 77 Illegal property flipping estimates reported by the FBI 77 Builder bailout/condo conversion indicate annual losses more than 77 Equity skimming $10 billion. In 2011 alone the FBI 77 Silent second received 93,508 suspicious activity 77 Home equity conversion reports relating to mortgage fraud, mortgage totaling more than $3 billion in 77 Commercial real estate loans losses (www.fbi.gov). 77 Air loans An individual who knows or is a victim of mortgage fraud should The perpetrators of mortgage understand what mortgage fraud fraud schemes include licensed/ entails, strategies victims should registered and non-licensed/ employ to protect themselves registered mortgage brokers, from further harm, and the lenders, appraisers, underwriters, a MORTGAGE FRAUD FACT SHEET FOR VICTIMS accountants, real estate agents, 77 The company/person pressured STEP 2 – Speak with a HUD- settlement attorneys, land you to sign over the deed to your approved housing counselor.
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