The Means of Prosecution for Mortgage Fraud
In order to properly prosecute mortgage fraud the government has established branches and units whose agenda is to help eliminate mortgage loan fraud.
The Mortgage Fraud Unit was established in 2007 within the CBI (Department Criminal Investigation Bureau). When reports come in regarding mortgage loan fraud the CBI will call upon the Mortgage Fraud Unit to help conduct fraud investigations. They will also assist law enforcement in prosecuting these criminals as well as educate law enforcement and associated agencies in the areas of mortgage loan fraud.
According to the New York State Banking Department, the Mortgage Fraud Unit and associated law enforcement have helped to capture criminals and prosecute cases that involved financial losses adding up to more than two hundred million dollars.
The Bureau of Justice Assistance (BJA) is an branch off of the government and Justice Offices which contains representatives who fight for justice by ensuring that criminal laws are enforced. One crime they work hard to prosecute is mortgage fraud. They try to reinforce the laws that exist and convince the government to create new laws that will better help strengthen statutes regarding mortgage fraud. According to the BJA, $218 billion were lost due to mortgage fraud in 2007. It is also their belief that the government reexamine their existing laws and make modifications where necessary.
The FBI also conducts mortgage loan fraud investigations and according to their reports, the top ten areas where mortgage loan fraud is prosecuted are as follows: California, Florida, Georgia, Illinois, Indiana, Michigan, New York, Ohio, Texas, and Utah. The FBI works with the MBA to help promote the Mortgage Fraud Warning Notice. In 2008, it was reported that the FBI conducted fraud investigations against four large corporations accused of committing mortgage fraud.
These corporations included: Fannie Mae, Freddie Mac, Lehman Brothers Holdings Inc., and American International Group Inc. Fraud investigators claim that at the time of these investigations nearly fifty percent of mortgage lenders were practicing mortgage lending without federally supervision. According to FBU reports, from 2005-2008 their investigations into mortgage loan fraud has produced over 2,500 cases and over 700 convictions. It was also reported again in 2009 that the FBI would be conducting 530 investigations concerning corporate mortgage fraud.
As the numbers tend to increase of mortgage frauds, so do the needs of mortgage investigator jobs. Many private practices or individuals hire private real estate and mortgage investigators as well. Depending on the case and the findings in the investigations, penalties can accrue to the thousands of dollars or up to years in prison.
