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We are we -- to about mortgage fraud.
Because it don't fence me quite frankly we went on another home mortgage industry and housing industry so much -- from apple closes earlier which I'm sure we'll get to.
-- -- LT Lafferty from Tampa is gonna join us now is an attorney talking about the small mortgage Brothers in new FBI report out on it.
-- got to tell us LT had even commit mortgage fraud.
Well that's sort of the problem there's a lot of different ways to commit mortgage fraud.
You know as a former federal prosecutor and -- criminal defense lawyer there is no specific.
-- -- fraud offense it's really just a category of a bunch of different types of criminal offenses.
But the bottom line is all mortgage fraud is gonna be some kind of -- material false statement.
Used to obtain a loan or refinancing.
From a lending institution.
Now who is typically the victim because he can't victims on both sides of the story can you.
Well that's a great question because most of the time people think of the victim as.
It would be in the lending institution you've got a loan from the lending institution and they claim to be the victim.
And certainly in all federal prosecutions.
They claim that the victim is the lending institution.
But I get a -- there's a lot of different victims here the homeowners themselves could be victims of the borrowers could be victims and cases awaits the predators are preying on those individuals like for example mortgage foreclosure rescue scams.
But -- -- the real victims are the real victims are people just like you and me if -- go out and any suburban neighborhood.
And someone has a home there once they purchased with a legitimate loan application.
There -- the real victims because of the real estate boom that was fueled by these fraudulent mortgage loan applications.
So they're sitting in a house right now in which the real estate appraised value of the houses in the real estate taxes or assessed on inflated home values.
Then all their neighbors half the neighbors were foreclosed homes there's no one living in the home.
So the real estate values are now -- -- but you're paying high taxes on a home that has very little bad you want it anymore.
But most importantly because of the new regulations in the new vigilance by the mortgage lenders.
You have no mobility.
You can't refinance your house you can't take advantage of the down market and move up in the market and buy a better house you can't even really move down in half -- And save yourself -- so the real victims are people like you and I.
-- okay so it could be anything from me submitting false documentation to -- lender on the other side you know.
Tell it promising me a -- I never get or something extreme like that another though that you listed some of it this the you know -- That the fraudulent schemes people are using today and the top of the list is reverse mortgages.
This is -- -- this is the Bane of my existence these things because they scare me so many people get into them.
Do you see a lot of clearly you see a lot of scams in these things.
You did and of course I'm -- down here in Florida we have a huge senior citizen population.
And the reverse mortgage the reverse mortgages scams really target -- senior city asked.
There an effort to get that equity -- -- your house especially for senior citizens who may need money.
And really the whole thing behind this reverse mortgage scam is as that you're targeting -- vulnerable population.
Within your just employing some other standard mortgage fraud schemes -- -- false loan applications.
Foreclosure rescue you straw purchasers.
So it's just that you're targeting the senior citizen population.
Am guessing that Floyd and the others -- and states really -- we had the more problems.
In the mortgage.
Business the residential mortgage business that's probably where the greatest amount of fraud is being perpetrated I read about that.
Well it is true if you look at that FBI report or if you look at the various and lexis -- reports that have been now.
-- Florida has actually led the nation in mortgage fraud for four straight years according to lexis nexis.
And if you look at the FBI report Florida's right at the top and a lot of different types of mortgage fraud.
But there -- several other states that are right up there as well California.
And Nevada in particular Las Vegas.
Any area in which there was a real estate boom for five years ago was.
So -- to a lot of mortgage fraud that related to mortgage fraud that was in the category of when there was a high time the real estate down.
Now Lou if you -- -- FBI reports what they're seeing is a different type of mortgage fraud.
Where is five years ago it was you know investment Ponzi schemes in loan originations schemes that was taken advantage of the lax vigilance by the lenders and review in the loan applications -- of the proverbial liars loans and now they're taking advantage of the depressed market if you will.
And so you may still have loan origination cases but instead of liars loans there actually using false documentation.
Or you have the foreclosures -- Actually -- new talk about those now could it it didn't -- that.
You know you sit California Nevada Florida and I got Yuma Arizona is in there as well those -- the states that saw the biggest -- they now -- -- the largest amount of foreclosures.
So what exactly -- some of the foreclosure scams that people need to be aware of.
Well that the perfect example is -- you you can't get -- your house is so that does back to the fact that you're the real victim meaning you can't.
Get out of the house in which you -- -- inflated taxes on or high mortgage on.
Soon you know your options are very limited.
And you'll see signs all over the place you're driving down the road and you'll see -- -- need help with your house to foreclosure rescue yeah and these homeowners with good and they're in desperate need of some assistance and when you're desperate.
You'll call those numbers on that sign.
And what these people promise you is what you need to be careful is there's nothing for free they never has been that's one of the old age adding.
Political promise you is is if you sell the house to me or you sell it to a straw buyer that has good credit.
Will allow you to stay in the house paying rent at a reduced rate.
And -- will promise will sell a house back to you when you recover or when the market recovers.
The problem is -- than ever really happens what happens is in the straw buyer of the person perpetrating a fraud takes out a new loan for a higher value.
Takes out the equity and you're stuck with a houseful.
It would -- -- -- with no house or he didn't get the house that it's got multiple mortgages on -- your -- worse -- situation.
So -- -- yet is thank you sir we appreciate the info that's good stuff last.
Thank you -- if he left parties attorney fellow white involves doing.
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