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Mortgage Fraud

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Cliff Salisbury

Thread Starter
Senior Member
Joined
Jan 16, 2002
Professional Status
Retired Appraiser
State
Ohio
Go to this site and go down to the story about 83 indited for mortgage fraud.
http://www.cleveland.com/

This investigation has been going on for some time. I am sure that it is not the end.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
Direct to the story:

http://www.cleveland.com/ohio/plaindealer/....ssf?/xml/story.
ssf/html_standard.xsl?/base/news/1030095059224700.xml

Hope this works. Looks like you'll have to copy the whole thing and paste.

Cliff,

This helps me keep going knowing that at least some of the rumors of these stings are true. This is what will help clean up the HUGE fraud mess that has gotten away with it for way toooooo long.

Thank you! Thank you! Thank you!
 

Jim McGrath

Junior Member
Joined
Jan 25, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Direct to the story:

http://www.cleveland.com/ohio/plaindealer/....ssf?/xml/story.
ssf/html_standard.xsl?/base/news/1030095059224700.xml

Hope this works. Looks like you'll have to copy the whole thing and paste.

Cliff,

This helps me keep going knowing that at least some of the rumors of these stings are true. This is what will help clean up the HUGE fraud mess that has gotten away with it for way toooooo long.

Thank you! Thank you! Thank you!

Pam, in case you don't know. I just heard that the FBI is now in Jacksonville investigating mortgage fraud. And an investigator for HUD is also on their way to check FHA appraisals in that area. You may see a lot of appraisers on their way out, or rather in jail soon.

Jim
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I've been hearing about that for at least 2 years. Can't happen soon enough for me!

Working on one right now in one of the big 'Flip' areas. Over 75 sales looked at - only 2 so far that MIGHT be legitimate. 6 are in the MLS as sales where no sale is recorded. Subject is a FHA Streamline Refi - FHA financed sale 3 years ago - MIGHT make the sale price from 3 years ago.????

Another one last week where almost all sales in the subdivision and surrounding subdivisions involve the same Realtor. Much of the MLS information does not match the public records for sale price or financing.

I'm really disgusted that so many Realtors here are either in on the fraud or helping to perpetrate it. The so called "Investors" clubs here blatantly tell everyone that if the appraisal doesn't make the value wanted they used the wrong appraiser. They have a nice list of appraisers and loan officers they suggest that will make the deal happen.

A ton of real trash here.
 

Leon Stewart

Member
Joined
Jan 15, 2002
Pam:

That's how the system works, and as you indicated, the Real Estate Agents and the Lenders play a big part in this process if there is a listed sale involved, and that's why the rounding up of these small fry's is not going to change anything when only minor players among them are involved. In this Cleveland situation there were no Major Real Estate Agencies or Major Lenders involved, and they do as much "Sub Prime" high risk Lending as the small Mortgage Operatives. Also I haven't seen any AMC's involved in any investigations either, so evidently they aren't checking them. One Mortgage Person coped a plea within the last week or so, so now he'll rat on others at the same level as he was. Which indicates that they are only interested in getting individuals at the lower level, rather than rooting out the entire problem, which stays in place for higher-up's to continue to keep in place. Until they change the mechanism that allow this activity to exist, you can end up changing the lower level bodies every six months. They have to close the loopholes.

leon
 
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