THIS IS A REPUBLISHED ARTICLE SUBMITT BY MARK MAUPIN
Lawmakers Propose Bills to Crack Down on Mortage Fraud
DAVID EGGERT
Associated Press
LANSING, Mich. - State lawmakers hoping to stop the fast-growing crime of mortgage fraud unveiled legislation Monday that would devote money to prosecuting offenders.>> House Republicans said their bills would designate $3 million for prosecution from a fund that is now used to investigate unlicensed realestate brokers. Another bill would specifically make mortgage fraud a felony punishable by 10 years in prison for a first offense.>>
Mortgage fraud losses in Michigan have jumped from almost $9 million in 2003 to $26 million in 2005, according to the FBI.>>
"We intend to go after these criminals who are picking on our mostvulnerable citizens and put them behind bars," said Rep. Fran Amos, R-Waterford, who is sponsoring legislation along with GOP Reps. Rick Baxterof Concord and Jim Marleau of Lake Orion.>>
Last year, federal authorities charged 20 people with fraud and related counts, disrupting five separate mortgage fraud organizations in the Detroit area. The groups - operating independently - are accused of bilking financial institutions out of $10 million.>
One bill proposed Monday would allow the state attorney general to use$3 million in the Real Estate Enforcement Fund to investigate and prosecute mortgage fraud. The money comes from a $15 fee levied on licenses for realestate brokers and associates.>
Oakland County Clerk Ruth Johnson, a former state representative, joined the legislators to give examples of mortgage fraud.>> Criminals claimed ownership of a woman's Bloomfield Township home byusing forged documents. Then they sold the property to another person, who obtained a $278,000 mortgage.>>
"They took the money, ran, and the lending institution is currently inthe process of foreclosing on her property," Johnson said.>> She also cited a situation where a woman returned to a home she owned and found another family living there who thought they had bought it legally.>> Johnson's office has installed two security cameras in the register of deeds office to try and stop mortgage and deed fraud.>>
The legislative package also includes a bill that would prevent an appraiser from modifying an appraisal in exchange for more business. Another component of mortgage fraud is appraisal fraud, where property is bought and appraised at an artificially high value.>> About 80 percent of fraud losses involved collaboration by industry insiders, according to the FBI.
Article Submitted By:> John Lopez
Budget Realty>
Livonia, MI>
Cell: 313-258-1001>
Top Secret Fax: 480-393-4049>
RealEstateMichigan@Yahoo.Com>
www.MichiganInvestorNetwork.com
Lawmakers Propose Bills to Crack Down on Mortage Fraud
DAVID EGGERT
Associated Press
LANSING, Mich. - State lawmakers hoping to stop the fast-growing crime of mortgage fraud unveiled legislation Monday that would devote money to prosecuting offenders.>> House Republicans said their bills would designate $3 million for prosecution from a fund that is now used to investigate unlicensed realestate brokers. Another bill would specifically make mortgage fraud a felony punishable by 10 years in prison for a first offense.>>
Mortgage fraud losses in Michigan have jumped from almost $9 million in 2003 to $26 million in 2005, according to the FBI.>>
"We intend to go after these criminals who are picking on our mostvulnerable citizens and put them behind bars," said Rep. Fran Amos, R-Waterford, who is sponsoring legislation along with GOP Reps. Rick Baxterof Concord and Jim Marleau of Lake Orion.>>
Last year, federal authorities charged 20 people with fraud and related counts, disrupting five separate mortgage fraud organizations in the Detroit area. The groups - operating independently - are accused of bilking financial institutions out of $10 million.>
One bill proposed Monday would allow the state attorney general to use$3 million in the Real Estate Enforcement Fund to investigate and prosecute mortgage fraud. The money comes from a $15 fee levied on licenses for realestate brokers and associates.>
Oakland County Clerk Ruth Johnson, a former state representative, joined the legislators to give examples of mortgage fraud.>> Criminals claimed ownership of a woman's Bloomfield Township home byusing forged documents. Then they sold the property to another person, who obtained a $278,000 mortgage.>>
"They took the money, ran, and the lending institution is currently inthe process of foreclosing on her property," Johnson said.>> She also cited a situation where a woman returned to a home she owned and found another family living there who thought they had bought it legally.>> Johnson's office has installed two security cameras in the register of deeds office to try and stop mortgage and deed fraud.>>
The legislative package also includes a bill that would prevent an appraiser from modifying an appraisal in exchange for more business. Another component of mortgage fraud is appraisal fraud, where property is bought and appraised at an artificially high value.>> About 80 percent of fraud losses involved collaboration by industry insiders, according to the FBI.
Article Submitted By:> John Lopez
Budget Realty>
Livonia, MI>
Cell: 313-258-1001>
Top Secret Fax: 480-393-4049>
RealEstateMichigan@Yahoo.Com>
www.MichiganInvestorNetwork.com
posted by Ralph Marcus (Mark) Maupin | 11:43 AM
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