California Real Estate Fraud Report

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08
Mar

Nothing to Brag About: California Leads in Suspicious Loan Reports

In a dubious but not surprising statistic, California is the leader in suspicious home loans (possible mortgage fraud or loan fraud), according to FinCen, the Treasury Department’s Financial Crimes Enforcement Network.

San Jose, Riverside and Los Angeles were the top three cities in terms of the suspicious activity reports (SARs) filed by banks for the period July 2011 – September 2011. The reports exceeded Miami and Las Vegas, which were ranked fourth and fifth.

According to the filings by the lending institutions, approximately 46%  of the SARs were related to homeowner debt removal or refinancing. The statistic I found most astonishing is that 15% of the loan applications involved discrepancies in the social security numbers.

Mortgage fraud and its close relative, short sale fraud, have created a significant negative impact on property tax valuations and collection, a point underscored repeated in my ebook “How to Commit Short Sale Fraud . . . and Get Away with It.” California Attorney General Kamala Harris has recognized this fact and noted that “We are looking at a situation of up to $640 billion in wealth having been lost because of this wave of foreclosures that has hit the state. There is a direct connection” between mortgage fraud “and the issue that we are challenged with in terms of our state budget crisis.”

Read the original article in the North County Times.

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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