According to the Fraud Problem blog: "Agents, appraisers, mortgage brokers and loan originators are going to prison in record numbers so the term "We've always done it this way" is just fine if jail is your desired destination, otherwise it's time to learn and stop the fraud problem."
The Fraud Problem blog lists common mortgage fraud scams, who you should complain to and provides education that may prevent you or your town from becoming victims of bad mortgage practices.
The most common responses/defenses they hear are:
- "How can that be, everybody in my office does it?"
- "We've always done it this way"
- "Well as long as we disclose, it can't be wrong"
- "It's just a bank application"
- "Nobody's harmed. The borrower got the cash, so who was hurt?"
- "That rule doesn't apply to us, it's an appraisal problem"
- "I asked the banker and he said they do it all the time, so it must be OK...."
Click below to read a couple of highlights from the Information & Updates section . . .
Appraiser over-appraised homes - go to jail! Phillip D. Thomas, 50, appraiser, was sentenced to twenty-four months in federal prison and was ordered to pay $6,309,277.20 in restitution for due to his preparation of more than 75 inflated appraisals between June 9, 1999, and November 1, 2000.
I don't want to know about fraud education... I want more loans, so get more loans or you're fired.
Mortgage broker was more worried about motivating his people than educating them about the right way of business.
FBI and IRS agents stop the mortgage broker in the street infront of his home, seize his Lamborgini, neighbors look on after the arrest.
Wife's car being seized and searched. Three other cars were in the garage, he had to drive something normal to work.
For the complete versions of these stories and many more, visit the Fraud Problem blog. It's an eye-opener!
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