Preventing Mortgage Fraud from Stealing Dreams

The Federal Bureau of Investigation, in its 2010 mortgage fraud annual report, says the housing industry seems to not catch a break from mortgage fraud. From 2009 to 2010, cases of mortgage fraud remained at the same elevated rate as a year ago: around 70 percent. In light of this, the authorities initiated Operation: Stolen Dreams, a massive crackdown of mortgage fraudsters.

Mortgage fraud, as the FBI describes, literally hit people hard where they live. They define this crime as a material omission on the part of the lender to insure the borrower of a loan. In a good way, the decline of the housing industry helped expose mortgage fraud which has been going on unnoticed for the past few years. Dealing with mortgage fraudsters can lead to real estate foreclosures and, literally, “stolen dreams.”

The FBI’s 2009 mortgage fraud report breaks down two kinds of mortgage fraud: property and money. Mortgage fraud can be considered “for property” if the fraudster’s aim is to misinform the victim to get his house. Mortgage fraud “for money” indicates the fraudster misleads a victim on purpose to get his cash.

The fraudster can be the lender or borrower in a mortgage fraud scene. Misinformation can take the form of a variety of examples such as fake identities, false tenders, kickbacks, etc. There is no universal way of initiating mortgage fraud, but every modus operandi known shares one common goal: personal gain.

Washington, D.C. may be one of several places in the United States with low incidence of mortgage fraud, but it pays to play safe. Being informed is a good way to guard against fraudsters. One way to avoid falling victim to these cheaters is to make sure that the Washington DC mortgage firm you are transacting with is duly licensed by state and federal agencies. Referrals can help you discern the authentic ones from the swindlers.

Mortgage rates higher than the current market trends also signify that there is something amiss. Review the Washington DC mortgage rates today and compare them with those from other mortgage agencies. Take note, a single agency alone has no capacity to determine how high rates will soar or how low rates will drop tomorrow.

The FBI website at fbi.gov has comprehensive resources on mortgage fraud that you can check out. For more info on the current mortgage rates Washington DC has, visit real estate news sections of websites like Yahoo! or MSN.

Darius Degross - About Author:
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