Posted by MistarellaFL on 6/4/08 8:35am
Msg #249938
Mortgage Fraud Cases Up by Two-Thirds
http://money.aol.com/news/articles/real-estate/_a/mortgage-fraud-cases-up-by-two-thirds/20080603123509990001
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Reply by BrendaTx on 6/4/08 8:46am
Msg #249940
***The epidemic of mortgage fraud is a reminder that wherever easy money is made, criminal activity soon follows.***
What is easier than hiring notaries and not paying them?
There's your answer folks.
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Reply by Roger_OH on 6/4/08 9:23am
Msg #249948
Mortgage fraud cases usually focus on a corrupt title company, LO, etc. Seemingly under the radar is the fact that SOMEONE is notarizing all those bogus mortgages. In most states (my own included), it is all too easy to obtain a notary commission, often just needing 30 days residency and a pulse to qualify. Lack of background checks leads to felons having commissions, or, not even bothering with a commission and just having a stamp made online or at a stationery store, where most of the time no proof of commission is required.
States should tighten up their eligibility requirements and mandate more extensive background checking.
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Reply by Lee/AR on 6/4/08 10:13am
Msg #249958
Sooo, it's the notary's fault??? Gimme a break.
Not saying there aren't a few notaries (usually working for the TC, Broker who is the real perp) out there knowingly aiding & abetting fraud, but even straw buyers have valid ID!
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Reply by WDMD on 6/4/08 10:17am
Msg #249960
Re: Sooo, it's the notary's fault??? Gimme a break.
I had someone, who I do not even remember, come up to me in a store recently and scream at me that it was my fault she was losing her home because I let her sign an adjustable rate loan package.
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Reply by BrendaTx on 6/4/08 10:13am
Msg #249959
You've got a point there, Roger.
* and just having a stamp made online or at a stationery store, where most of the time no proof of commission is required.*
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Reply by NCLisa on 6/4/08 10:33am
Msg #249961
Notaries are not the Mtg Fraud Police.
The type of mortgage fraud this article is talking about has nothing to do with notaries and corrurpt TC's! They were not bogus mortgages, the strawbuyers were real people that qualified for mortgages, they were just part of a scam that over inflated the price of the homes in that area! If anyone had a clue it would have been the real estate agent, the TC's have no idea of what property values are supposed to be.
The only thing a notary needs to do is verify that the signer is the same person as their ID states. Notaries are not the mortgage fraud police. The lenders should be policing themselves. A simple title search shows if the property is being or has been flipped or sold recently, and if some of these companies would pay for more than a "current owner" search, they'd see the history of flipping.
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Reply by Julie/MI on 6/4/08 10:56am
Msg #249964
You're right Lisa
I read the article and cannot fathom how anyone came to the conclusion that notary stamps can be made anywhere.....or that a notary had any remote interest in this story.....
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Reply by jojo_MN on 6/4/08 12:19pm
Msg #249975
Re: You're right Lisa
Actually, in the state of Wisconsin, you get your stamp FIRST, then apply for the license.
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Reply by jojo_MN on 6/4/08 12:51pm
Msg #249977
Re: You're right Lisa
Very backwards. I was actually in a bar one night a couple years ago. When I was talking about my business, a lady told me that her friend notarized her mortgage documents for her. She said her friend just went to an office supply store and bought it. She never even registered it with the state because she "didn't know she had to". I told the lady that it was totally illegal, then asked for her name. She quickly left. If I were smart, I would have said that I needed help with some closings or something and asked for her name.
I'm sure there are quite a few non-commissioned notaries in Wisconsin!
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Reply by CaliNotary on 6/5/08 12:27am
Msg #250054
This is exactly why I won't use credible witnesses
As we've seen time and time again over the past few months, mortgage fraud is not too difficult to commit. And there is no way I am going to get my butt dragged into a courtroom and try to explain why I notarized the signature of someone who doesn't exist, or exists but sure isn't the person that appeared in front of me, or any of the other number of ways people can commit fraud.
I'd rather have a few unhappy borrowers in my wake than have a lawyer on retainer.
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Reply by Bob_Chicago on 6/4/08 10:03am
Msg #249956
Had a re-schedule recently. She would not sign the..
first time because no LO was present.
She had just had Grand Jury duty,
and said that many of the cases involved mortgage fraud.
She was afraid becuase closing was at her home and no LO was present.
Insisted that it be reshceuled at a branch of the lending bank. Branch had
nothing to do with the loan.
We met at the branch, and the only thing that the bank employee did
was show us into a room.
She signed with no problem and I was paid for two signings and two print jobs.
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