Posted by CarolynCO on 11/6/04 3:36pm
Msg #10975

Mortgagge Fraud on Rise

The following article appeared in the Consumer News section of the November issue of AARP Bulletin:

"If mortgage fraud continues to escalate, the FBI says, Americans could face another savings and loan crisis like the one that cost taxpayers billions in the 1980s.

The FBI is investigating 533 cases of suspected mortgage fraud this year, more than five times the 102 cases it probed in 2001, Chris Swecker, an assistant director, said in October. He blamed the refinancing and housing boom, spawned by record low interest rates, for the spike in fraud cases.

This could lead to increases in interest rates and increased fees charged by lenders who've got to make the money up somehow, adds FBI spokesman William Carter."

Reply by CarolynCO on 11/6/04 3:37pm
Msg #10976

Re: OOPS

Mortgage

Reply by PAW Notary Services on 11/6/04 4:02pm
Msg #10978

What the article (from you quote, at any rate) neglects to say is that the number of mortgage applications has risen considerably in the past 4 years. So, if there is a 500% rise in the number of applications, then it would stand to reason, all things being equal, that there would be a 500% increase in the number of case of suspected fraud.

I don't know if there's been a five-fold increase in applications or not, but I wouldn't be surprised given the low, low interest rates and the refi boom. So, if mortgage applications dwindle, I submit that the number of cases of suspected mortgage fraud that is investigated by the FBI will shrink as well.

Reply by HisHughness on 11/6/04 6:24pm
Msg #10981

Tony Negrete has now moved beyond mere canonization and is expected to be the next Pope. Rumor is that sainthood and the papacy will be conferred upon him simultaneously. The most recent rumor is that Zorastrians have identified him as the good God Ahura Mazda incarnate. Expect to see long lines of robed worshippers carrying incense at Tony's door in the near future.

Reply by CarolynCO on 11/6/04 7:04pm
Msg #10982

**What the article (from you quote, at any rate)**

I quoted all of it. That's all there was.

Reply by Everette/Va on 11/6/04 7:49pm
Msg #10983

I laughed when I read that blurb in the AARP publication. I think Paul is right on target with his analysis of the figures. I retired from the mortgage industry in 2001 and my contacts there
tell me that their applications have increased about five-fold. However I cannot explain the Negrete's rapid rise to fame.

Reply by BrendaTX on 11/6/04 8:40pm
Msg #10985

Re: Mortgage Fraud on Rise

Everete said: "However I cannot explain the Negrete's rapid rise to fame."

Charisma, Ev, Old Boy. It's that Negrete charm, style and the rakish way he sends out the checks on time. Who can resist all that?

Reply by Glena/NV on 11/7/04 4:46am
Msg #10988

Re: Mortgage Fraud on Rise

I agree with Brenda/TX. I am sure that he fits the robe as well.

Reply by BrendaTX on 11/6/04 8:21pm
Msg #10984

Said PAW NS:
"What the article (from you quote, at any rate) neglects to say is that the number of mortgage applications has risen considerably in the past 4 years. ..."
----------------

What am I missing here? It seems that the article Carolyn took the time to post and share did refer to the number of mortgage applications rising...

Here's the article Carolyn quoted:

"If mortgage fraud continues to escalate, the FBI says, Americans could face another savings and loan crisis like the one that cost taxpayers billions in the 1980s.

The FBI is investigating 533 cases of suspected mortgage fraud this year, more than five times the 102 cases it probed in 2001, Chris Swecker, an assistant director, said in October. >>>>>>>>>>He blamed the refinancing and housing boom, spawned by record low interest rates, for the spike in fraud cases.<<<<<<<<<<<<<

This could lead to increases in interest rates and increased fees charged by lenders who've got to make the money up somehow, adds FBI spokesman William Carter."