"Michigan Legislators Take Up Real Estate Fraud Legislation"
FlippingFrenzy.com
THIS IS A REPUBLISHED ARTICLE SUBMITTED BY MARK MAUPIN
Michigan legislators have unveiled a legislative package they say will help stop the increasing number of mortgage fraud cases by making the crime a felony and freeing millions of dollars to investigate and fight real estate-related scams. Michigan’s real estate fraud losses have skyrocketed from almost $9 million in 2003 to $26 million in 2005, according to the FBI.
House Bill No. 6267, introduced by Representative Rick Baxter, allows money in Michigan’s Real Estate Enforcement Fund to be used by the state’s Attorney General’s Office to investigate and enforce mortgage fraud. The money, reported to be around $3 million, is currently restricted for prosecuting unlicensed activity.
Michigan’s struggling economy has given rise to a particular form of mortgage fraud. Many of the state’s residents are refinancing their homes to help pay bills, but some unscrupulous lenders are deceiving them into signing over their titles. House Bill 6267, which makes mortgage fraud a felony, also provides prosecutors with the flexibility necessary to try cases more efficiently because real estate fraud crimes can overlap many legal jurisdictions.
The legislative package introduced yesterday targets several types of real estate fraud, including equity skimming, mortgage-related identity theft, and the widespread use of property flipping, which regular readers of this blog know involves purchasing property and artificially inflating its value through false appraisals.
The package also includes a bill to prevent an appraiser from modifying appraisals in exchange for repeat or future business. The bill creates a felony class violation for appraisal fraud on any level, including influencing appraisers.
The FBI has ranked Michigan as one of the Top Ten “Hot Spots” nationwide for mortgage fraud, and has publicly made combating the crime a priority because real estate fraud hurts the overall economy and negatively affects consumers through increased interest rates and bank fees.
FlippingFrenzy.com
THIS IS A REPUBLISHED ARTICLE SUBMITTED BY MARK MAUPIN
Michigan legislators have unveiled a legislative package they say will help stop the increasing number of mortgage fraud cases by making the crime a felony and freeing millions of dollars to investigate and fight real estate-related scams. Michigan’s real estate fraud losses have skyrocketed from almost $9 million in 2003 to $26 million in 2005, according to the FBI.
House Bill No. 6267, introduced by Representative Rick Baxter, allows money in Michigan’s Real Estate Enforcement Fund to be used by the state’s Attorney General’s Office to investigate and enforce mortgage fraud. The money, reported to be around $3 million, is currently restricted for prosecuting unlicensed activity.
Michigan’s struggling economy has given rise to a particular form of mortgage fraud. Many of the state’s residents are refinancing their homes to help pay bills, but some unscrupulous lenders are deceiving them into signing over their titles. House Bill 6267, which makes mortgage fraud a felony, also provides prosecutors with the flexibility necessary to try cases more efficiently because real estate fraud crimes can overlap many legal jurisdictions.
The legislative package introduced yesterday targets several types of real estate fraud, including equity skimming, mortgage-related identity theft, and the widespread use of property flipping, which regular readers of this blog know involves purchasing property and artificially inflating its value through false appraisals.
The package also includes a bill to prevent an appraiser from modifying appraisals in exchange for repeat or future business. The bill creates a felony class violation for appraisal fraud on any level, including influencing appraisers.
The FBI has ranked Michigan as one of the Top Ten “Hot Spots” nationwide for mortgage fraud, and has publicly made combating the crime a priority because real estate fraud hurts the overall economy and negatively affects consumers through increased interest rates and bank fees.
posted by Ralph Marcus (Mark) Maupin | 11:32 AM
0 Comments:
Post a Comment
<< Home