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Combating Fraud in the Mortgage Industry

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    Nevada Attorney General Catherine Cortez Masto on efforts to reduce mortgage fraud.

  • Duration 5:01
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One of the states hit hardest by the -- and buses at the highest foreclosure rate in the country.

For nearly get this sixty consecutive months.

Nearly 35 homeowners there are underwater on their home loans owing more than their homes are worth.

My next guest is one of them and she happens -- -- the public -- she's teaming up alongside California's attorney general to combat fraud within the mortgage industry against home.

Joining me now on about it attorney general Catherine Cortez mast out welcome to the show -- -- You got your own experience obviously being underwater but why are you so passionate about this topic.

Well you just said -- we have a number one distinction that we shouldn't have been the highest foreclosure rate highest unemployment rate.

We lead the nation in the number of bankruptcy filings we are hardest hit here.

The people here are suffering and in my office what I am seeing is comprehensive.

Mortgage fraud.

And really -- -- tackle that is taking all of our resources but somebody needs being held accountable there needs to be justice for these individuals that are suffering in -- my community.

Well I -- I it it's very obvious that your state is ground zero for the problems with the mortgage meltdown.

And lots of overbuilding and frankly a lot to charlatans but.

Let me ask in this.

Are you more worried about banks in their practices are are you worried about out now crooks.

-- had gotten on board this whole problem and found ways to get money out of people hill.

Don't have any to -- Jerry.

It's all of that -- nice talk about comprehensive fraud what we're seeing Linda -- -- put it in perspective for you.

We're concerned about those individuals for engaging in -- reported for foreclosure rescue scam or loan modification scam.

Against the homeowners -- are concerned about.

Those entities and individuals who are engaging in illegal foreclosure signings -- foreclosure on practices like the robo -- you hear about.

And we're also concerned and what we're seeing or individuals engaging in fraud in the servicing of the loans -- origination the securitization.

A we've taken -- action against all individuals engaging in those practices.

You think the banks who were underwriting these loans are every bit as culpable are their hands every bit -- jury.

As the guy -- runs a foreclosure scam where they tell people.

You give us some money we'll get out of foreclosure than they take the money and run is it the same thing -- -- comparable.

I can't -- the comparable let me just say everybody's got a piece of -- everybody's call.

-- there's a lot of players that are culpable and that's the problem.

And from my perspective is the attorney general we -- gonna use our laws and our resources to hold those individuals accountable.

After -- -- thorough investigation in the facts and evidence indicate.

-- they violated our state laws but there are a lot of people who are taking advantage and engaging in this type of fraud and it runs the gamut.

I see it's got a shocking what some people will do.

But there are also a lot of folks out there many of them who watch this television show who say hey.

If -- problems were essentially caused by the fact that you took out a -- you couldn't afford.

We have no sympathy Florio.

That was your job to make sure that you didn't over pay for house that you did buy a house she couldn't afford.

How do you respond to that criticism.

I'd say that's -- Valid criticism but those aren't people that are coming to -- for systems and rightfully so.

Those aren't the people who actually war.

The ones that there and their loan information was inflated unbeknownst to them or they're signature was forged on their documentation.

By the middle man.

Those -- the people that are coming task for assistance of those the people that wanna save their homes try to do everything they can -- taken advantage of those in the homeowners were dealing with obviously the people that you just identified they're not gonna come to us persistence because -- justice culpable and quite frankly if our investigations indicate to our facts and evidence that they violated our state laws as well we will take action against them.

Well it a lot of AG's attorney generals across the country banded together to get a settlement with the big banks.

And that they in turn would dole out to people who have been harmed in their view.

You'd you'd have not dropped out of that but your partner California attorney general has.

What's the status -- that do you expect any kind of announcement we -- every -- to hear about something happening with that we've been.

You see stories all the time to say something's eminent do you believe they'll be able.

Come to some kind of agreement.

I hear the same things you do and at the end of the day for my purposes.

I am waiting for the final terms to come out to make a determination as to whether or not.

That an agreement or settlement will benefit the people in my state but.

I agree I think there's a lot of there's a lot of moving parts to the right now when it issues that I'm concerned about is the release what what's the language in the release if it's overly broad.

Clearly that's that's something that I'm not gonna sign onto particularly given and in the investigations.

In the litigation we haven't going so far in -- Well.

-- double somebody tells always true thanks for coming on the show tonight -- appreciate your time.

Thank you Jerry.

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