5 Indicted in Multimillion Dollar Texas Fraud Scheme
A licensed Texas attorney and real estate developer, a sports agent, two bank loan officers, and a real estate appraiser have been indicted in a multimillion dollar mortgage fraud scheme.  The indictment alleges involvement in a mortgage fraud scheme that reached every aspect of a real estate loan: seller, buyer/borrower, loan officer, appraiser, escrow officer, and title company.

Special Report: Mortgage Fraud Scheme Gets Cash Through Fraud
The State has made a mortgage fraud scheme which tacks extra money onto a mortgage illegal, because it defrauds lenders and endangers home ownership.  Gov Crist has signed a bill into law that makes mortgage fraud a felony crime.  The following video is 4 ½ minutes summarizing this bill and the FBI’s efforts in following the massive paper trails of fraud in the State of Florida.  View CBS4 Report

Three indicted in McKinney mortgage fraud
Last fall, a News 8 investigation revealed questionable real estate transactions in the Hills Creek neighborhood of McKinney. Yesterday, a Collin County grand jury indicted three men for allegedly lying on deeds on three different homes in the neighborhood. On Hills Creek in McKinney, a house went from $315,000 to a sale price of $625,000 in four years. Now the Collin County Grand Jury has indicted three men for lying on deeds to homes on Hills Creek. Not one lives in the neighborhood. All allegedly told their mortgage lenders they were.

Mortgage Bankers Association calls for more FBI agents, prosecutors
With an industry database showing a 30 percent increase in loans involving suspected mortgage fraud in 2006, the Mortgage Banker's Association is asking Congress to set aside $31.25 million over five years to hire more FBI investigators and prosecutors.

Mom Turns into Mortgage Fraud Sleuth
Georgia - She used to be a DeKalb County stay-at-home mom. Now she is a nationally recognized mortgage fraud expert and her mission is to spread the word about taking back control. Mortgage fraud can work dozens of ways but here is one typical scenario: Fraudsters move in and flip a house again and again, driving the price up on a property that is not worth it. The fraudsters get big loans from banks and the banks, many times, end up eating the loss. The community suffers from un-sellable eyesores that sit empty for years.

17 penalized in 'mortgage flipping'
As part of an elaborate mortgage-flipping scheme that has bilked lenders and blighted neighborhoods, a vacant house in the 5300 block of South Laflin Street sold for $165,000 last year and was resold for twice that amount just hours later, state officials said Tuesday. After a three-month investigation, 17 businesses and individuals have been disciplined for their involvement in a mortgage-fraud ring that falsified documents and created bogus appraisals, Illinois Department of Financial and Professional Regulation officials announced Tuesday.

Beware the builder's lender
So much of the fun in buying a newly built home comes from being able to choose the upgrades that tailor it to your tastes. Want steam vents in the shower? No problem. With a swipe of the pen, they're yours. And for now, at least, many builders are offering such goodies at no extra cost. Usually, though, there's a condition: The builder will pick up the tab only if you get your mortgage through its preferred lender.

Title Insurance Debate, Round Two
Just 5 percent of your title insurance premium is used to pay claims, says the federal government, while 70 percent is paid out in the form of agent commissions. But fixing prices, as is now the case in New Jersey, absolutely eliminates any competition of interest to consumers. Without price competition, consumers have no reason to prefer one price-fixed title agent over another price-fixed title agent. One correspondent said those who wish to complete would be "violating the CURRENT title laws by offering discounts."

Wells Fargo settles subprime class-action suit
Wells Fargo & Co. has settled a class-action lawsuit over lending practices at its Wells Fargo Financial Inc.'s mortgage unit, which focuses on the subprime market.The Association of Community Organizations for Reform Now, or ACORN, had alleged in the lawsuit, filed in 2003, that Wells Fargo Financial failed to properly disclose points and prepayment penalties to borrowers, and inaccurately reported loan balances for some California customers to credit reporting agencies.

Nine Arrested On Mortgage Fraud Charges
The FBI arrested nine people Wednesday on charges of engaging in a multimillion-dollar Queens-based mortgage fraud conspiracy, authorities said. Assistant FBI Director Mark Mershon said 10 people were named in court papers, which identify three of the conspirators as principals in New Generation Funding, a mortgage broker with a branch office in Jackson Heights. Court papers say they recruited "straw buyers" from the Bangladeshi community to purchase properties with false identities and to secure mortgage financing.