Chung & Ignacio, LLP Articles FBI Reports Findings on Mortgage Fraud Investigation for 2010

FBI Reports Findings on Mortgage Fraud Investigation for 2010

By M. Stephen Cho  Sep. 6, 2011 3:37p

A report was just published by the FBI on a study they conducted for the purpose of providing insight into the breadth and depth of mortgage fraud crimes against the U.S. and its citizens for last year. The report educates both FBI program managers and the general public on relevant information to better understand the threat posed by mortgage fraud. The information in the report is based on mortgage industry, federal, state and local law enforcement, FBI and open source reporting.

Some Key Findings:

  • The total dollar losses resulting from the mortgage fraud are unknown.
  • There has been a continued decrease in loan originations from 2009 to 2010 and this is expected to continue through 2012. Foreclosures were reported at 2.9 million by RealtyTrac for 2010 which was a 2% increase from 2009 and a 23% increase since 2008. High unemployment levels, high housing inventory, lower housing prices and increased foreclosures and defaults were prevalent in 2010.
  • The perpetrators of the mortgage fraud include: licensed/registered and non-licensed/registered mortgage brokers, appraisers, lenders, accountants, underwriters, real estate agents, land developers, settlement attorneys, builders, investors, bank account and trust representatives.
  • Mortgage fraud continued to rise in 2010 consistent with levels of 2009 and it was noted that mortgage fraud schemes are readily adaptable to economic changes and modifications in lending practices.
  • The top states for known or suspected mortgage fraud during 2010 were California, Florida, New York, Illinois, Nevada, Arizona, Michigan, Texas, Georgia, Maryland and New Jersey.
  • The fraud schemes reported by law enforcement and industry in 2010 included:

foreclosure rescue, loan origination, real estate investment, short sales, equity skimming, illegal property flipping, commercial loans, title/escrow/settlement and builder bailout schemes.

A Few Conclusions on the Study

The FBI will continue to crack down on mortgage fraud, anticipating its continuance and will target mortgage fraud perpetrators in a program called "Operation Stolen Dreams" which was initiated by the Department of Justice last year. It is expected that due to a continued depressed housing market, mortgage fraud will continue and the instigators will look for new and creative ways to get around laws and take advantage of loopholes in the mortgage lending market. This type of fraud is a form of theft and is against the law in California and across the United States.

Have you been accused of a theft crime in Rancho Cucamonga?

If you have been accused of fraud or any other theft crime, you need to act quickly and consult with a Rancho Cucamonga criminal defense lawyer to protect your rights and freedom. The penalties associated with conviction are serious and a conviction can stay on your record permanently. At M. Steven Cho, Attorney at Law, we can help you build a strategic defense to combat the charges being brought against you.

Contact a Rancho Cucamonga theft crime attorney in our office today for a consultation and we will go over the details of your case in confidence.

Other Recent Articles

Domestic Violence Crimes in California

Criminal charges related to domestic violence are among the most common in the state of California. The California court system takes domestic violence very seriously in an effort to protect victims ...
More Articles »

DUI a Leading Offense in Rancho Cucamonga

In a recent survey of the arrests reported in Rancho Cucamonga, California, 11 out of 23 arrests were for DUI, putting this offense at almost half of all arrests during a 2 day time period.
More Articles »

California Remains Top State for Car Theft

Accused of auto theft or carjacking? Call the Rancho Cucamonga criminal defense lawyer from the firm immediately to learn about your rights and how you can face these charges.
More Articles »
(909) 726-7112
8577 Haven Avenue Suite 306
Rancho Cucamonga, CA 91730

Office Hours:
Mon-Fri 8:30 AM-6:00 PM

Main Website:
View Website
Contact our office by email by clicking the button below: