Mortgage Fraud = Mortgage Foreclosure?

I was shocked to see some disturbing numbers reporting a spike in mortgage fraud in the 1st quarter of 2008. With Florida and California leading the way with fraud ranging from false payroll documents, tax documents, and understating debt. Is this not what got us into our foreclosure crisis in the first place?The report said that mortgage fraud jumped 42% in the 1st quarter of the year. It was just last year that we were talking about mortgage fraud, scams and how it caused the collapse of our housing market. Now we are hearing news of even worse cases in some of our larger states. Is any one regulating this and assuring new homebuyers will not be the next foreclosure victims in the US.

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It is election time and maybe candidates are tied up talking about the “important issues” when candidates and current government officials need to focus on what runs this country, the housing market. It is the backbone of our financial stability. Home foreclosure is at an all time high with an expected 2.5 million home foreclosures in the US this year. How big does this need to get before someone is going to regulate the mortgage industry.Credit guidelines have become very strict and it is suprising to see that mortgage fraud could pass through a “tighter” process when applying for a new loan. Who is responsible for these fraudulent documents, the borrower or the loan officer trying to get the loan funded and cash in hand?

You can make your own judgements and speculations. I do know that from being in the mortgage industry for many years that false documents are often presented to an underwriter in hopes of getting a clear to close. To understand this you need to look at it like this. A Mortgage Broker is just a broker, he takes your information, puts together documents, and sends to a lender such as Countrywide.

The underwriter or account executive at Countrywide kick back a rate and term which is presented to you the borrower. If you agree then the Mortgage Broker will begin collecting documents from you to support the loan and credit requirements.If the documents do not support the loan requirements then the mortgage broker and borrower are out of luck. If they are modified before sending to the underwriter to get an approval then that is fraud. Does the mortgage broker know or did they do it? We will just leave that open for debate.

This type of unregulated business is the reason Americans are losing their homes to foreclosure and why if you know anyone in foreclosure they must visit http://MyLoanSavers.com for a Free Consultation on how you can save your home and mortgage. You may be a victim of predatory lending or mortgage fraud.

Stop foreclosure, mortgage fraud, loan fraud, mortgage scams, loan modification scams and more by visiting MyLoanSavers.com