Posted by BrendaTx on 1/16/12 7:45am
Msg #409124

Frauds

I am curious. Has anyone encountered a signer that was proven to be signing documents for fraudulent purposes?

Reply by Deborah Breedlove on 1/16/12 10:27am
Msg #409140

No, not that I was aware of anyway.... n/m

Reply by Linda Spanski on 1/16/12 12:03pm
Msg #409145

yes n/m

Reply by Deborah Breedlove on 1/16/12 12:12pm
Msg #409146

Linda.....circumstances? n/m

Reply by BrendaTx on 1/16/12 12:52pm
Msg #409155

The FBI reports that mortgage fraud perpetrators include everyone but a criminal who sits across the table from us with mom's or dad's ID.

The Perps are licensed/registered and non-licensed/registered mortgage brokers, lenders, appraisers, underwriters, accountants, real estate agents, settlement attorneys, land developers, investors, builders, bank account representatives, and trust account representatives. There have been numerous instances in which various organized criminal groups were involved in mortgage fraud activity.

The only mention of notaries in my search to find out anything about facing a criminal across the table from a notary is that the FBI mentions that the criminals need access to notary seals. Another quite reputable source says likewise.

It's very frustrating. We are so diligent in our quest to be the gatekeepers, but no matter how many subscriptions I buy to fancy reporting services, I can't find a darn thing specific that says "Because she was diligent, Notary Smith, identified fraudulent activity and called the authorities."

No evidence exists that I can get my hands on to substantiate that notaries can catch a thief. The thievery is happening because of insiders and at levels prior to a notary's involvement. When notaries are needed for complicity, it seems that the thieves just locate a notary seal or they are notaries themselves. They are criminals and will make forgeries and notarize with their own seals.

In other words, notaries (like us) aren't getting many opportunities to face mortgage fraud.

Argh.

Reply by GOLDGIRL/CA on 1/16/12 4:04pm
Msg #409174

And on a related note ....


From DSNews.com: (MI notaries: note penultimate graph!):

Michigan is taking a strong stand on mortgage fraud. New state laws that went into effect at the start of the year have redefined mortgage fraud in the eyes of the law and outline strict consequences for perpetrators.
Residential mortgage fraud is now considered a felony in Michigan, and punishment includes up to 20 years in prison and fines up to $500,000.
“Tougher penalties are needed to protect against scammers who think nothing of bilking unsuspecting homeowners and lenders out of tens of thousands of dollars,” said Michigan Gov. Rick Snyder when he signed the law in October.
The new laws define mortgage fraud itself as a criminal act, whereas previously, mortgage fraud fell into the categories of false pretenses and forgery.
Making false statements, concealing facts, or recording documents that contain misstatements or misrepresentations are some of the acts that fall into the category of residential mortgage fraud.
Fraud committed on loans of less than $100,000 can result in up to 15 years in prison and up to $100,000 in fines.
For loans greater than $100,000, fraudsters may receive up to 20 years in prison and up to $500,000 in fines.
Additionally, the statute of limitations on cases involving false pretenses relating to real property, forgery, and mortgage fraud was extended from six to 10 years.

The Michigan Notary Public Act was also amended so that notary violations relating to real property or mortgages is considered a felony and can result in up to 14 years in prison.

“Honest homeowners and lenders should not be held responsible for the terms of a fraudulent mortgage. This change allows the courts to set things right,” Snyder said.

Reply by BrendaTx on 1/16/12 4:09pm
Msg #409175

Re: And on a related note ....

*The Michigan Notary Public Act was also amended so that notary violations relating to real property or mortgages is considered a felony and can result in up to 14 years in prison. *

Good. That will help compound the sentences of criminals.

Reply by GOLDGIRL/CA on 1/16/12 5:33pm
Msg #409196

Exactly. That's what I thought, too, BrendaTx n/m

Reply by LCS_CA on 1/16/12 4:30pm
Msg #409181

Maybe the diligent notary just declines to perform the notarization and reports nothing to the authorities...

Reply by BrendaTx on 1/16/12 7:31pm
Msg #409208

Reporting nothing to authorities is not helpful.

Perhaps the diligent notary would both decline and report.

If it is mortgage fraud...

Report Rev Mort (HECM) fraud--

"If you are aware of fraud, waste, and abuse in HUD programs and operations, report it to HUD's Inspector General Hotline!"

Telephone: Call toll-free, 1-800-347-3735, Monday through Friday, from 10:00 a.m. to 4:30 p.m., Eastern Time.
Fax: (202) 708-4829
E-mail: [e-mail address]
Mail: HUD OIG Hotline, GFI
451 7th Street, SW
Washington, DC 20410

Report other suspected mortgage fraud--
http://www.mortgagenewsdaily.com/mortgage_fraud/National_Resources.asp
There is a list of resources on this page. From that link:

"A quick ‘rule-of-thumb’ on who to contact:
If you suspect you are a victim of mortgage fraud, contact the local FBI office;
if you suspect or need to report predatory lending practices or other abusive-types of lending, contact your state Attorney General’s office;
if you suspect or need to report mortgage scams by a real estate broker or appraiser, contact the state’s real estate licensing board or appraisal licensing board.
The Better Business Bureau is also an excellent resource if you think you are a victim of fraud. These and many other sources of help are listed below."

(FYI - I don't have much hope for the BBB.)

Reply by MistarellaFL on 1/16/12 5:21pm
Msg #409192

I've had a few suspected that I wouldn't agree to notarize

On LWTs and POAs.
Women and JRs that I suspected to be children going to forge their parents names and have
their friends witness....alerted authority once who blew off my complaint.
Only one suspected son in law started throwing a hissy-fit until I advised him that I was going to notify police that I suspected fraud, wifey shut him up REAL quick.

Reply by ReneeK_MI on 1/16/12 6:54pm
Msg #409203

Yes, twice (as an NSA) n/m

Reply by JanetK_CA on 1/16/12 8:16pm
Msg #409211

Not exactly - and not personally - but I was told of a situation by a paralegal I was notarizing for that might fall under that heading. (I've told this story here at least a couple of time, so apologies for the repetition.) She said a man and a woman presenting themselves as husband and wife signed a refi extracting $200,000 in equity from a property. Two years later the real wife found out and went after them.

We didn't get into how the fake wife was ID'd for the refi in the first place, but the notary in question did get thumbprints, as required by state law in California. A copy of that journal entry was requested and the fraudster was identified from the thumbprint. The paralegal's office was in the process of bringing a case against her and hopefully the (ex?) husband, as well.

Reply by Keys_Notary on 1/18/12 5:14pm
Msg #409390

Yes, Twice & refused to complete signings. One the I D did not come close to matching the signer and the signing service attempted to coerce me into completing the closing.
The 2nd one I was told to pick up the papers and leave and the paid me anyway!