As a teller, I have heard a lot about mortgage fraud. Since I am able to process most of my customers' mortgage payments, I have noticed how much some of them struggle just to pay their note for the month. It's also shocking to see how much they owe for the month compared to what they don't have in their account. It just makes me sick to know that there are people out there who are so desperate to get their bonus that they fib all these applications just to get the sale. Not only do I see people struggling to keep up with their payments, I am also able to get really close to some of the customers and I find out that it's not just them that will be losing the home but their whole family as well. I have a friend who recently was looking into buying a house. He told them that he was only getting paid about $32,000 per year but they somehow could "only" approve him for a $150,000 mortgage loan. He then said he will think about it and be back. When he got home, we did some calculations and we concluded that he wouldn't be able to keep up with the mortgage payment and all his other expenses. It's just shocking to hear that when he had applied, they did not verify his income and that they just went off of what he said since his credit was "solid". So in conclusion, I believe those who falsely give people the idea that they can afford such an expensive home should be prosecuted for putting others out on the streets.
Personally, I am pleased to know that 9 mortgage fraud convictions have been obtained in DC. In my opinion, all people involved with mortgage fraud should have to deal with serious consequences. Crimes like mortgage fraud, are what make capitalism fail. Unfortunately, because of some people’s greed, other people lost everything, because they were approved for mortgages they could not afford. As Lisa said, it is the fact that people who know better give people who may not know better the impression that they can afford expensive homes—that they can’t. It is an immensely sad situation, especially for people who are trying to reach the “American Dream,” of owning a home, when they are faced with the reality that they simply cannot afford the house that they “qualified” for. Too many people, individuals, and families, have lost their homes, because regulation failed, and greed grew. Mortgage companies took advantage of those who didn’t know any better and of those who thought they were doing something to better their lives.
I found this article very interesting but also sad. Why do people (criminals) believe that they can get away with about anything these days? Mortgage fraud seems to be the target for people over their forties; well at least that’s what I assume from reading this article. It is very shocking to see that the Operation of Stolen Dreams loss $3 million dollars within the months of March through the 18th of June. This shows how much mortgage fraud is happening and it happens to be done frequently and fast. This brings us to the quote, “Mortgage fraud has escalated into one of the most notorious crimes in the United States," according to General Michael P. Stephens. The majority of people committing these crimes are probably highly educated, because most people who commit corporate crimes are within the corporation/businesses themselves. Mortgage fraud not only hurts the criminal if caught but also it hurts the victim because they can lose everything. In hopes law enforcement will work hard in putting an end or improving their investigation skills to catch all the criminals from their wrongdoings.
After 30 years in the years of real estate, I can honestly say that I know of only two couples that were questionable. One had changed jobs and was having problems proving past employment and the other had problems proving up a down payment. Having said that, I feel that I was very fortunate in having had a reputable loan officers that had excellent underwriting procedures. I believe that the fraud and collapse of the housing market has come out of greed by scam artists coming from inflated areas. There again the scheme has to do with co-conspirators between individuals and the mortgage companies. One such case of fraud has sentenced Gohar Mirza, 29, Annadale, Virginia a mortgage broker, to 63 months in prison followed by a term of three years supervised release and ordered to pay $3,000,000 in restitution. According to documents, Mirza profited by selling residential real estate to individuals referred to as straw buyers. He helped obtain 100% financing to purchase properties by producing fraudulent loan documentation. The straw buyers frequently defaulted on these loans, causing millions of dollars in losses to banks and commercial bankers. This is a segment of the white collar crime that I am interested in pursuing.
Stolen dreams is right, the mortgage companies as well as the realtors who qualified people who they knew full well that they would not be able to make their payment long term, should also fall under the Greed category, in the fleecing of Americans. Granted they used no visible weapon, they have however robbed those people of the opportunity of owning a home in the near future, placed them in financial hardship as they struggled, against the odds, to make it work, while only increasing their debt. The homes sold were inflated in value so when the bubble popped on the market they were left with a home worth far less than they purchased. The home could not be sold for what they owed, so most homes were walked away from, to leave the neighborhood to deal with scattered vacant homes, prime targets for break-ins and looters. The Mortgage fraud hurt more than just the targeted homeowner; it hurt the neighborhoods, which affected the city, state etc. What a SAD legacy this generation is leaving, the “Mortgage Mafia”.
As a teller, I have heard a lot about mortgage fraud. Since I am able to process most of my customers' mortgage payments, I have noticed how much some of them struggle just to pay their note for the month. It's also shocking to see how much they owe for the month compared to what they don't have in their account. It just makes me sick to know that there are people out there who are so desperate to get their bonus that they fib all these applications just to get the sale. Not only do I see people struggling to keep up with their payments, I am also able to get really close to some of the customers and I find out that it's not just them that will be losing the home but their whole family as well. I have a friend who recently was looking into buying a house. He told them that he was only getting paid about $32,000 per year but they somehow could "only" approve him for a $150,000 mortgage loan. He then said he will think about it and be back. When he got home, we did some calculations and we concluded that he wouldn't be able to keep up with the mortgage payment and all his other expenses. It's just shocking to hear that when he had applied, they did not verify his income and that they just went off of what he said since his credit was "solid". So in conclusion, I believe those who falsely give people the idea that they can afford such an expensive home should be prosecuted for putting others out on the streets.
ReplyDeletePersonally, I am pleased to know that 9 mortgage fraud convictions have been obtained in DC. In my opinion, all people involved with mortgage fraud should have to deal with serious consequences. Crimes like mortgage fraud, are what make capitalism fail. Unfortunately, because of some people’s greed, other people lost everything, because they were approved for mortgages they could not afford. As Lisa said, it is the fact that people who know better give people who may not know better the impression that they can afford expensive homes—that they can’t. It is an immensely sad situation, especially for people who are trying to reach the “American Dream,” of owning a home, when they are faced with the reality that they simply cannot afford the house that they “qualified” for. Too many people, individuals, and families, have lost their homes, because regulation failed, and greed grew. Mortgage companies took advantage of those who didn’t know any better and of those who thought they were doing something to better their lives.
ReplyDeleteI found this article very interesting but also sad. Why do people (criminals) believe that they can get away with about anything these days? Mortgage fraud seems to be the target for people over their forties; well at least that’s what I assume from reading this article. It is very shocking to see that the Operation of Stolen Dreams loss $3 million dollars within the months of March through the 18th of June. This shows how much mortgage fraud is happening and it happens to be done frequently and fast. This brings us to the quote, “Mortgage fraud has escalated into one of the most notorious crimes in the United States," according to General Michael P. Stephens. The majority of people committing these crimes are probably highly educated, because most people who commit corporate crimes are within the corporation/businesses themselves. Mortgage fraud not only hurts the criminal if caught but also it hurts the victim because they can lose everything. In hopes law enforcement will work hard in putting an end or improving their investigation skills to catch all the criminals from their wrongdoings.
ReplyDeleteAfter 30 years in the years of real estate, I can honestly say that I know of only two couples that were questionable. One had changed jobs and was having problems proving past employment and the other had problems proving up a down payment. Having said that, I feel that I was very fortunate in having had a reputable loan officers that had excellent underwriting procedures. I believe that the fraud and collapse of the housing market has come out of greed by scam artists coming from inflated areas. There again the scheme has to do with co-conspirators between individuals and the mortgage companies. One such case of fraud has sentenced Gohar Mirza, 29, Annadale, Virginia a mortgage broker, to 63 months in prison followed by a term of three years supervised release and ordered to pay $3,000,000 in restitution.
ReplyDeleteAccording to documents, Mirza profited by selling residential real estate to individuals referred to as straw buyers. He helped obtain 100% financing to purchase properties by producing fraudulent loan documentation. The straw buyers frequently defaulted on these loans, causing millions of dollars in losses to banks and commercial bankers. This is a segment of the white collar crime that I am interested in pursuing.
September 18, 2011 12:20 PM
Stolen dreams is right, the mortgage companies as well as the realtors who qualified people who they knew full well that they would not be able to make their payment long term, should also fall under the Greed category, in the fleecing of Americans. Granted they used no visible weapon, they have however robbed those people of the opportunity of owning a home in the near future, placed them in financial hardship as they struggled, against the odds, to make it work, while only increasing their debt. The homes sold were inflated in value so when the bubble popped on the market they were left with a home worth far less than they purchased. The home could not be sold for what they owed, so most homes were walked away from, to leave the neighborhood to deal with scattered vacant homes, prime targets for break-ins and looters. The Mortgage fraud hurt more than just the targeted homeowner; it hurt the neighborhoods, which affected the city, state etc. What a SAD legacy this generation is leaving, the “Mortgage Mafia”.
ReplyDelete