Soooo that’s how they did it…..

[somdrenter]

Florida tops 1Q mortgage fraud list
By J.W. ELPHINSTONE – 5 hours ago

NEW YORK (AP) — Reported incidents of mortgage fraud jumped 42 percent nationwide, with Florida reporting the highest number of cases, according to industry data released Monday.

Properties in the Sunshine State accounted for nearly a quarter of all mortgage fraud incidents, the Mortgage Asset Research Institute said. California ranked second, followed by a three-way tie for third among Illinois, Maryland and Michigan......

....The most common mortgage fraud cases included misrepresenting income, employment history, and debt and assets. Maryland, for example, had an unusually high percentage — 69 percent — of its cases involved tax return and financial statement misrepresentation......

The increase in reported incidents comes as lenders raise credit standards to curb rising foreclosures. Critics charge the industry for being too lax in qualifying risky borrowers during the boom, which fueled an overheated housing market.

But the stricter requirements have done little to curb fraud.
"Tightening credit standards by itself doesn't eliminate fraud," said Merle Sharick, vice president and national manager of business development for MARI, especially in markets that typically attract a lot of speculators like Florida and California.

The Associated Press: Florida tops 1Q mortgage fraud list

 

[backagain39]

Florida tops 1Q mortgage fraud list
By J.W. ELPHINSTONE – 5 hours ago

NEW YORK (AP) — Reported incidents of mortgage fraud jumped 42 percent nationwide, with Florida reporting the highest number of cases, according to industry data released Monday.

Properties in the Sunshine State accounted for nearly a quarter of all mortgage fraud incidents, the Mortgage Asset Research Institute said. California ranked second, followed by a three-way tie for third among Illinois, Maryland and Michigan......

....The most common mortgage fraud cases included misrepresenting income, employment history, and debt and assets. Maryland, for example, had an unusually high percentage — 69 percent — of its cases involved tax return and financial statement misrepresentation......

The increase in reported incidents comes as lenders raise credit standards to curb rising foreclosures. Critics charge the industry for being too lax in qualifying risky borrowers during the boom, which fueled an overheated housing market.

But the stricter requirements have done little to curb fraud.
"Tightening credit standards by itself doesn't eliminate fraud," said Merle Sharick, vice president and national manager of business development for MARI, especially in markets that typically attract a lot of speculators like Florida and California.

The Associated Press: Florida tops 1Q mortgage fraud list

I can tell you exactly how they did it in Maryland, it has been going on for years, the builder finds a mortgage broker and an appraiser that is willing and here is what they do.......they take a persons debt and pay it off completely....the appraiser jacks the price of the house up in order to cover the additonal cost of the person's debt.....and the mortgage broker uses the overage to make sure that the debt is marked clear and paid on the credit report and low and behold the person qualifies for the loan.........

 

[dn0121]

Wirelessly posted (Mozilla/4.0 (compatible; MSIE 4.01; Windows CE; PPC; 240x320))

but isn't that Obama's solution for making it so everyone can have a home?

 

[somdrenter]

I can tell you exactly how they did it in Maryland, it has been going on for years, the builder finds a mortgage broker and an appraiser that is willing and here is what they do.......they take a persons debt and pay it off completely....the appraiser jacks the price of the house up in order to cover the additonal cost of the person's debt.....and the mortgage broker uses the overage to make sure that the debt is marked clear and paid on the credit report and low and behold the person qualifies for the loan.........

That's a new one for me backagain39. I'd like to hear more.

But how about this one:

.....After the nation's last major banking disaster, Congress set up a system to catch rogue appraisers. Their game: inflating the value of homes at the direction of equally unscrupulous real estate agents and mortgage brokers, whose commissions are determined by the size of the deals...

.....And despite ample evidence appraisers are pressured into inflating home values -- sometimes to prices in support of loans that are more than buyers can afford -- the federal regulators charged with protecting consumers have thus far made a conscious choice not to act.

AP IMPACT: Weak rules cripple appraiser oversight: Financial News - Yahoo! Finance

 

[Sula]

I can tell you exactly how they did it in Maryland, it has been going on for years, the builder finds a mortgage broker and an appraiser that is willing and here is what they do.......they take a persons debt and pay it off completely....the appraiser jacks the price of the house up in order to cover the additonal cost of the person's debt.....and the mortgage broker uses the overage to make sure that the debt is marked clear and paid on the credit report and low and behold the person qualifies for the loan.........

I had a local builder offer to do this for me just to sell me a house. My credit was fine, had a couple of student loans. Could have easily qualified for the house without but they thought this was an "incentive". Scary stuff.

 

[backagain39]

I had a local builder offer to do this for me just to sell me a house. My credit was fine, had a couple of student loans. Could have easily qualified for the house without but they thought this was an "incentive". Scary stuff.

Yep the one I am talking about is local................

 

[Sula]

Yep the one I am talking about is local................

It is very common in CA. I saw houses that started at 600,000 go over 1.5 mil in a matter of a couple years. Beautiful homes. You would drive thru the neighborhood and everyone had paper blinds with no furniture.

 

[backagain39]

It is very common in CA. I saw houses that started at 600,000 go over 1.5 mil in a matter of a couple years. Beautiful homes. You would drive thru the neighborhood and everyone had paper blinds with no furniture.

I believe it's called mortgage fraud..............

 

[Sula]

I believe it's called mortgage fraud..............

one of the many definitions of mortgage fraud.

 

[backagain39]

one of the many definitions of mortgage fraud.

LOL...........yep

 

[somdrenter]

I had a local builder offer to do this for me just to sell me a house. My credit was fine, had a couple of student loans. Could have easily qualified for the house without but they thought this was an "incentive". Scary stuff.

Yep the one I am talking about is local................

backagain39, Sula, would you consider this builder to be one of the smaller builders or, one of the larger ones?

 

[CalvertNewbie]

Florida tops 1Q mortgage fraud list
By J.W. ELPHINSTONE – 5 hours ago

NEW YORK (AP) — Reported incidents of mortgage fraud jumped 42 percent nationwide, with Florida reporting the highest number of cases, according to industry data released Monday.

Properties in the Sunshine State accounted for nearly a quarter of all mortgage fraud incidents, the Mortgage Asset Research Institute said. California ranked second, followed by a three-way tie for third among Illinois, Maryland and Michigan......

....The most common mortgage fraud cases included misrepresenting income, employment history, and debt and assets. Maryland, for example, had an unusually high percentage — 69 percent — of its cases involved tax return and financial statement misrepresentation......

The increase in reported incidents comes as lenders raise credit standards to curb rising foreclosures. Critics charge the industry for being too lax in qualifying risky borrowers during the boom, which fueled an overheated housing market.

But the stricter requirements have done little to curb fraud.
"Tightening credit standards by itself doesn't eliminate fraud," said Merle Sharick, vice president and national manager of business development for MARI, especially in markets that typically attract a lot of speculators like Florida and California.

The Associated Press: Florida tops 1Q mortgage fraud list

Hubby & I sure missed the boat on that one when we bought here a year ago, and moved to Maryland from NY. Are you saying that we could have gotten a new house instead of one built in 1996 AND wiped our massive debt free? Darn our realtor for not being shady and for not offering to commit fraud for us.

Yes people, I'm just kidding! I spent years busting people who were commiting insurance fraud (mostly attorneys, medical providers and body shops) so I know better. Eventually, the truth comes out.

 

[Larry Gude]

You people...

...are STILL missing the boat on this. Who CARES how someone got a home and a loan IF they intend to live in the home? They KNOW what the mortgage is gonna be. They KNOW if they can afford the cash flow or not.

Many of the people who are defaulting are INVESTORS who sought to flip the house and make money off of it. The value dropped. They couldn't sell at a profit, so they stop making the payments.

The value of a house is an absolute irrelevancy until you go to sell it. No ones paycheck goes up or down, no ones grocery bill goes up or down, no ones personal expenses go up or down and no ones mortgage goes up or down based on the appraised value of a home.

This is a question of whether or not to bail out people who guessed wrong on a gamble they took.

 

[somdrenter]

Who CARES how someone got a home and a loan IF they intend to live in the home? They KNOW what the mortgage is gonna be. They KNOW if they can afford the cash flow or not.

Looks like the government is taking the same It’s only mortgage fraud approach.

 

[Larry Gude]

Ok...

Looks like the government is taking the same It’s only mortgage fraud approach.

...but think that through; If a car dealer lowers their standard and gives someone a car that 'can't' afford it, who gets hurt if the dealer is also the lender?

Lending laws tend to be written to provide cover for the lenders. That's where the problem lies; too much protection for the lenders, thus, a lower concern for the facts than they otherwise would be compelled to have.

Add to that, the incessant re-selling of mortgages that only serves to obscure even further the 'facts' on the ground.

And the genesis of THAT mindset is, again, the government desire for lenders to be less discriminatory in the first place.

 

[somdrenter]

...but think that through

Sure. And there’s no need to speculate about the effect of prices based not on economic fundamentals, but based on fraud, toxic lending and greed.

Using your example, the car dealer (lender) gets bailed out directly or indirectly by tax payers. If that’s not enough, the FED prints money as fast as they can which further devalues the dollar.

 

[Larry Gude]

Right...

Sure. And there’s no need to speculate about the effect of prices based not on economic fundamentals, but based on fraud, toxic lending and greed.

Using your example, the car dealer (lender) gets bailed out directly or indirectly by tax payers. If that’s not enough, the FED prints money as fast as they can which further devalues the dollar.

...but, to clarify, my point is that lenders, be it for cars or homes or credit cards, need more risk, obviously, to avoid these type situations. We should NOT be bailing out lenders because lenders should NOT be making loans they are not willing to deal with, IE, if there is a default, they simply take possession of the home and deal with it from there.

The larger, underlying problem is one of stock prices. CEO's and their teams make money based on stock price which is to say what they can get the stock buying public to go for of which profit and loss and asset and liability are only parts. If CEO's of lending companies stood to prosper or suffer based on how an individual loan actually performed, we'd see much, much more accountability.

Dontcha think?

Same damn thing just happened under Clinton with tech stocks.