Subprime Mortgage Loan Scams

Subprime Mortgage Loan Scams



Subprime Mortgage Loan Scams
Imagine landing your dream home .​
Your credit is​ a​ bit shaky,​ but you​ manage to​ get a​ subprime loan with an​ adjustable rate mortgage .​
a​ few years later the​ interest rates jump and you​ can no longer afford to​ pay .​
You see an​ ad for a​ business that’s willing to​ help—it’ll pay your mortgage for a​ modest monthly fee while you​ get back on​ your feet .​
But here’s the​ heartbreak: it’s a​ scam .​
The con artists just take your money and run…
It’s just one of​ the​ latest schemes and frauds being seen these days across the​ financial services industry .​
These scams—which include plenty of​ shenanigans with mortgages and subprime loans—are costing the​ nation tens of​ billions of​ dollars a​ year .​
Millions of​ homeowners are caught up in​ this subprime mess .​
the​ Federal Reserve has gotten involved in​ an​ attempt to​ bail out the​ mortgage loan companies .​
Criminal charges may be filed against these companies for falsifying records,​ loaning money to​ under-qualified home buyers,​ and not reporting the​ truth to​ investors.
These are all good reasons why the​ US government is​ squarely focused on​ cracking down on​ the​ largest of​ these financial crimes,​ launching proactive initiatives and shifting resources as​ trends emerge,​ all the​ while working hand-in-hand with a​ host of​ government and private sector partners.
Currently,​ investigators are actively pursuing mortgage companies and investment irregularities.
The government is​ investigating 14 corporations involved in​ subprime lending as​ part of​ our Subprime Mortgage Industry Fraud Initiative launched last year .​
The companies come from across the​ financial services industry,​ from mortgage lenders to​ investment banks that bundle loans into securities sold to​ investors .​
They’re also looking at​ insider trading by some executives .​
Traditional mortgage fraud:
In one state alone,​ more than 1,​200 cases open today (up about 40 percent from last year),​ mostly involving fraud for profit,​ where groups of​ straw buyers,​ realtors,​ etc .​
rig schemes to​ buy properties that are flipped or​ allowed to​ go into foreclosure .​
Hotspots include California,​ Texas,​ Arizona,​ Florida,​ Ohio,​ Michigan,​ and Utah .​
Suspicious activity reports that we review for potential mortgage fraud have grown from 3,​000 in​ fiscal year 2003 to​ 48,​000 in​ fiscal year 2018 .​
This year,​ they’re on​ pace to​ receive more than 60,​000 such reports .​
A recent case: in​ November,​ the​ owners of​ a​ long-time Minnesota homebuilder called Parish Marketing—along with a​ bank officer,​ a​ closing agent,​ and others—pled guilty to​ a​ $100 million mortgage scheme involving some 200 homes .​
If you​ are a​ victim of​ the​ subprime mortgage madness,​ contact your bank and see if​ there are any programs in​ place to​ alleviate the​ pain.




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