Investor’s Business Daily: Mortgage Scams a Growth Industry

by Alex Stenback on December 9, 2005

Ibd_fraud_1The graphic at right (click it for larger version) is from an excellent and very disturbing article from the Investor’s Business Daily, which details some of the cases of mortgage fraud the FBI has uncovered.  Turns out, investigators are finding cases of fraud that go FAR beyond the garden-variety, "victimless" sort committed in pursuit of home ownership for a single individual:

"The types of fraud occurring are moving away from the fraud for home ownership, the little-white-lie kind of fraud, to the fraud for profit, where people are just flat out looking to take money from the banks and fly," said Nick Larson, with the Mortgage Asset Research Institute.

How bad is it?  Take this one example from the article:

The FBI and U.S. Attorney’s office traced the [fraud] to a lawyer/mortgage broker, Chalana McFarland, in Stone Mountain, Ga. McFarland had purchased the students’ Social Security numbers from a classmate, then used them to dupe lenders into 169 loans worth more than $20 million.

That horse-choking figure is astonishing, and one hopes there is a special circle of hell reserved for Ms. Mcfarland. What’s more, as the article points out, the FBI investigates fraud for federally insured financial institutions, which means that the taxpayer may ultimately end up holding the bag for all this.
ยท Mortgage Scams Rising Along with Home Prices [Investors.com]

Leave a Comment

 

Previous post:

Next post: