Las Vegas called ‘mortgage fraud ground zero’?
According to FBI Special Agent, Scott Hunter Las Vegas is called “mortgage fraud ground zero“! This problem is becoming so wide spread that special task forces have been created to combat the problem. Every week you read in the paper or view the news about another real estate industry professional being arrested for some type of real estate or mortgage fraud. Just this month, Cindy Birkland was arrested for alledged mortgage fraud! According to the FBI, mortgage fraud is becoming one of the fastest growing white collar crimes in the United States!
Mortgage Fraud is usually committed by several individuals who all have a certain role within the scheme. Usually a loan officer, borrower, real estate agent and/or an appraiser. The most common type of mortgage fraud is a “straw buyer”. This is where the bank lends hundreds of thousands on a home that is way over inflated due to an appraiser setting an unrealistic value. The group splits the money and never has any intention on making any payments on the home.
More to follow…
June 4th, 2008 at 8:35 pm
usually the appraiser is in cahoots. I am surprised this still happens with no checks and balances. I remember a company in California that did this and read about it in the papers. seriously, How does it happen time and time again. Are the penalties not that stiff?
June 5th, 2008 at 11:57 am
It amazes me that so much fraud is still going on these days. Hopefully, they catch these people and weed out a majority of the bad seeds so the rest of us honest, non-fraudulent mortgage professionals can continue business.
June 7th, 2008 at 2:09 pm
why in the world would you put such negative trash on a site that wants to sell real estate?
you probably already have scared 100’s of people from moving to vegas!!
June 9th, 2008 at 10:41 pm
How does informing people that they need to be aware of crooks that prey on those that aren’t informed, negative?
July 18th, 2008 at 11:33 am
I love blogs and I love being informing of what’s going on…and I always keep in mind two things, a person is not guilty until they have been judged so in a court of law and the media is in the business of ratings. While many real estate and mortgage professionals are being identified as crooks by the media, some of them are being used as the scape goats for an industry that has taken a real beating lately. The mortgage industry is complex and has alot of behind the scene people that are also being identified and not mentioned in the media, ie. appraisers, underwriters and processors. It takes a group of people to put a loan together and get it closed. Many times what one person does may not be known by another working on the same loan. Unfortunately, as in every profession, someone has to be the ultimate responsible person. In real estate it is the Broker and in mortgages it is the Broker or the Loan Originator. I learned along time ago, that when I point a finger out, there are three pointing back at me…so, I am careful not to judge others, regardless of what I hear and/or see in the media. The key for me is to be informed, recognize when something looks to good to be true it usually is and always do my best so that I am a positive example. Vegas is a great place to live, I have been here for 43 years and I have been in the real estate business for 16 years. As professionals in the industry, we must stick together and educate the communities we live in. There will always be people in the world that try to get ahead at someone elses expense. The more informed and educated the public is the better chance we all have of living in peace.
September 7th, 2008 at 10:17 pm
I’m glad the likes of Ms. Birkland & Mr. Brown have been charged with 90 counts of various real estate complaints. It’s unfortunate that people like this prey on the people who are uneducated or unaware of what is write/wrong. Situations like this make it hard for Great Realtors/Lenders with it comes to gaining trust in a client. Fortunate for me, I have met Mr. Brown personally and he tried to convience me to join his schemes. I would not be able to sleep at night. I enjoy educating my clients about their entire real estate transaction. I want them to be completely informed and comfortable with me and my team - Thanks for publishing this blog.