MORTGAGE FRAUD AND THE FBI - IT'S A LIVING

The FBI is going into the business of cracking down on mortgage fraud.

According to the Mortgage Asset Research Institute, we're going through a mortgage fraud crime wave (http://www.marisolutions.com/resources-news/press-release-20090316.asp) as reported cases are up substantially over the past few years.

US News and World Report lists the top ten mortgage fraud states (http://www.usnews.com/blogs/the-home-front/2009/03/17/the-top-10-states-for-mortgage-fraud.html) which are: 10- Colorado, 9- Missouri, 8- California, 7- Michigan, 6- New York, 5- Maryland, 4- Georgia, 3- Illinois, 2- Florida... and the grand winner is 1 - Rhode Island!

How's it being done?The FBI is targeting these fraudulent practices: Undisclosed Kickbacks, clandestine or hidden second mortgages, false income statements, non-occupants claiming to be occupants, down payment gifts that are repaid (it's not a gift if you pay it back, it's a false-loan), inflated purchases prices, financial arrangements which disguise the true extent and method of deposits.

This is a big departure for the Bureau which, since 9/11 has been heavily involved in terrorist investigations. Why suddenly are they becoming the national fraud squad? One reason is because it's necessary. It's also about time. But there's more here than meets the eye. Thanks to the various state and federal asset sharing programs, where criminal proceeds are concerned, the Bureau can take a share of whatever monies are recovered. They might even wind up owning some fraudulently mortgage properties.

So, in a very real sense, mortgage fraud can become an income stream for the otherwise cash-strapped Bureau. And just to prove they're taking it seriously, the Deputy Director announced this week that the FBI is even going undercover to root out the culprits.
(http://www.newsdaily.com/stories/tre52j49t-us-financial-crackdown)

Next stop? How about bonus fraud? Look for undercover agents hunting for asset-shares inside AIG, Bank of America, Citi and all the other "bonus babes." It's a living!