who works to prevent mortgage fraud

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which agencies work to prevent and take acton against mortgage fraud?

colin · Posted: Fri Feb 16, 2007 2:47 pm Post subject:

Hi McKaig,

Mortgage fraud not only affects consumers but lending institutions are also getting affected by it.

Federal law enforcement agencies are continuously in touch with and are coordinating with state as well as local law enforcement agencies, financial institutions & regulators to bring a stop to this problem.

Some effective steps that have been taken in this regard are that -

Freddie Mac & Fannie Mae are now required to report suspicious frauds on a MFIN (Mortgage Fraud Incident Notice). This was made possible because of the regulation passed by Office of Federal Housing Enterprise Oversight (OFHEO).

OFHEO, FBI & Financial Crimes Enforcement Network (FinCEN) are working towards establishment of a reporting device which would be similar to the Suspicious Activity Report banking industry has.

Criminal investigation into such fraud activities are conducted by FBI, IRS, United States Postal Inspection Service (USPS) and Department of Housing and Urban Development, Office of the Inspector General (HUD-OIG) to locate and disrupt such mortgage fraud networks.

Mortgage fraud is listed as one of the fastest spreading white collar crimes in the country. Only general awareness and effective prompt measures by federal agencies will help to control and stop it.

Colin

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Colin thanks for the information, the first measure you mentioned states reporting of suspicious frauds by freddie mac and fannie mae, which frauds are normally reported through mfin

colin · Posted: Fri Feb 16, 2007 3:15 pm Post subject:

Hi McKaig,

Frauds which are reported are like similar appraisal fraud in multiple mortgages or pattern frauds, institutional frauds and incidents of frauds which are being investigated by the government. These are reported when mortgage request comes to Fannie Mae or Freddie Mac for its funding or purchase by them.

Colin

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