Entries Tagged 'Fraud' ↓

If you're new here, you may want to subscribe to my Blog Update Announcement List. Thanks for visiting!

FHA Mortgage Reform could again be delayed by ridiculous political antics. Who else but a bunch of politicians could take what should be a simple sprucing up of a program which is basically good enough already, needing only to be expanded to include a few more people, and turn it into a multi-year ordeal.

Continue reading →

While everyone has their eyes locked on Congress as it tries to solve the massive problem of how mortgage brokers are paid, I would like to remind everyone about the real problem in the mortgage industry - fraud. When all the dust settles in the mortgage industry, I believe we will find that a large percentage of the foreclosures destroying real estate markets around the country have come from instances of fraudulent mortgages.

Professional “house flipping” rings have generated huge amounts of cash which they use to help in their efforts to drag straw buyers, inexperienced loan officers and real estate agents, appraisers, and even attorneys into their crooked schemes. It isn’t the use of yield spread premium that has led to this problem. Most of the money comes from the seller side of the transactions. This will turn out to be a much larger factor in the problem than many experts think it will. Probably more significant than subprime loans, stated loans and 100% financing programs that many want to blame for the problem.

Continue reading →