D
ata compiler
CoreLogic
predicts “2016
could reach
highest fraud
risk since the
crisis,” with some of the largest
increases coming to some of
the least expected metro areas.
Mortgage and real estate fraud
has been growing again for the
last six years, and everyone needs
to be on alert.
BACK, BIGGER AND
BADDER THAN EVER
• In Q3 of 2015 Mark Zuckerberg
was scheduled to face trial for real
estate fraud.
• A NYC crime wave involving
stealing title to homes with fake
deeds has resulted in 525 Depart-
ment of Finance investigations as
of February 2016.
• A Portland real estate agent is
accused of conning an 82- year-
old woman into signing over
her home.
• Dozens of court cases were
covered by the Mortgage Fraud
Blog during the first six weeks
of 2016 alone.
• We discovered investors bla-
tantly boasting of getting away
with mortgage fraud on social
networking sites
Real estate fraud is a big
issue, and it’s growing. Indi-
viduals must not only com-
plete their due diligence when
purchasing property, but must
remain diligent all of the time.
Do not underestimate the risk.
Unsuspecting property own-
ers can lose their homes, and
can still be on the hook for the
entire mortgage. Yet, that pales
in comparison to some of the
other consequences of being caught up
in fraud. All real estate industry partic-
ipants need to protect the business in
order to preserve their future income
and wealth.
Perhaps scariest of all is when inves-
tors become victims by being caught
up in fraudulent activities.
This permeates through all levels
of the industry from borrowers, to
REALTORS®, to mortgage brokers,
bank loan officers, lawyers, title com-
panies, appraisers, and even politi-
cians and celebrities. These cases are
now investigated by a vast number of
agencies and special task forces who
are pro-actively on the hunt for cases
to investigate. These agencies include
the FBI, Securities and Exchange
Commission, and U.S. Secret Service.
No shortcut is worth the penalties.
Once charges are piled up including
wire fraud, mail fraud, and bank fraud,
some of which can individually carry
10 COMMON TYPES OF
MORTGAGE & REAL
ESTATE FRAUD IN 2016
1. Identity theft
2. Craigslist rental fraud
3. Wire fraud
4. Occupancy fraud
5. Title theft
6. Bait and switch
7. Money laundering
8. Falsified loan applications
9. Forced placed insurance
10. Extortion
30 years sentences for each offense,
individuals can easily be looking at
a life sentence in real prison.
We dug in, and interviewed
frontline professionals who have to
combat fraud, and keep their clients
safe. Here’s what they said…
Combating Title Fraud in NYC
Dave Ratner of Sotheby’s
International Realty in NYC says,
“In New York, the buyer’s attor-
ney orders the title. But the title
companies should be vetted by the
borrowers, as they are paying and
receiving the insurance policy.”
STEPS FOR SAFETY
1. Not allowing for power of
attorney on sellers’ side of the
transaction.
2. Verifying signatures and valid
forms of government issued
identification.
3. Pulling the most recent
deeds prior to the transac-
tion through a continuation
search on the property.
Discerning Legitimate
Help from Scams
Just as damaging can be
property owners tuning out to
phone calls and the mail, out
of fear of fraud, and over-
whelming amounts of noise.
So how can owners spot the
real deal when their loans are
sold or transferred?
Fuquan Bilal of National
Note Group says “We usually
send our borrower a shock
package that includes a copy
of original mortgage and
note. Any assignments or
allonges to prove the chain
of title is complete and in