St Louis Mortgage Refinancing News Reports Arrests Made In Mortgage Fraud Probe
In March 2010, the nation saw the official launch of the national mortgage fraud enforcement campaign. The efforts of federal agents led to 485 arrests nationwide, making it the largest collective enforcement initiative against mortgage fraud.
United States Attorney General Eric Holder along with FBI Director Robert Mueller with the included efforts of the Office of Inspector General Kenneth Donohue of HUD are leading this financial crusade dubbed “operation stolen dreams.”
Is this new operation working? Consider that the mortgage fraud crack-down has already uncovered 1,215 criminal defendants nationwide with 485 arrests being made.
These ones now awaiting trial are allegedly responsible for more than $2.3 billion in financial losses.
To date, this has resulted in 191 civil enforcement actions which in turn has recovered more than $147 million.
“From home buyers to lenders, mortgage fraud has had a resounding impact on the nation’s economy,” said the Director Mueller of the FBI.
He goes on to say: “Those who prey on the housing market should know that hundreds of FBI agents on task forces and their law enforcement partners are tracking down your schemes and you will be brought to justice.”
The types of alleged mortgage fraud cases include builder bailout schemes, where builders establish relationships with unlicensed mortgage brokers to sell homes to straw buyers at inflated prices.
St Louis refinance professionals are seeing other types of fraud including “ghost loans” where straw buyers misleadingly obtain loans on properties that have multiple unrecorded liens without the new lender being apprised of this situation.
However, let the buyer beware: This mortgage fraud investigation will no doubt include homeowners who lied on their loan applications and gave fraudulent information to the mortgage broker or lender.
As the different types of mortgage fraud grow more exotic and damaging, federal agents and their investigations are staying one step ahead in putting these ones behind bars, making them pay restitution and finally putting this fiscal crisis behind us.
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