FBI: Mortgage Fraud a Growing Problem
The number of mortgage fraud cases investigated by the FBI almost doubled the past three years, reflecting a problem that is "pervasive and growing," the bureau said Wednesday in its annual report on financial crimes. The bureau said its mortgage fraud cases increased from 436 in 2003 to 818 in 2006, and acknowledged that its case load likely represents a small piece of the problem.

State sues mortgage companies in homeowners scam
Three Chicago businesses promised to rescue more than a dozen struggling homeowners since 2003, then scammed them out of tens of thousands of dollars in home equity, state Atty. Gen. Lisa Madigan said in a lawsuit filed Wednesday.  The firms--Eyes Have Not Seen Inc.; Creative Financial Solutions; and Mutual Trust Funding, formerly known as Greater Investment Solutions--lured victims by offering to help make mortgage payments, according to the suit, filed in Cook County Circuit Court. The companies then ran a scam that involved persuading the homeowners to put their homes in someone else's name, the lawsuit alleges.

Mortgage fraud: the new white-collar crime
Blizzard is the division chief over major fraud in the DA’s. Four months ago he led an investigation that landed Houstonian Doris Chen and seven others in jail. But now his division is taking a new huge step to combat this prevalent crime: They are going undercover.

Mortgage Bankers On The Defensive
Now mortgage brokers are facing congressional investigation. The Banking, Housing, and Urban Affairs Committee, chaired by Christopher Dodd, D-Ct., held a hearing entitled "Preserving the American Dream: Predatory Lending Practices and Home Foreclosures," to look at sub-prime and predatory lending as the reasons foreclosures have risen so fast recently nationwide. Senator Dodd's stated purpose for the hearing was to "create, sustain, preserve, and protect the American dream of home ownership, and to stop abusive practices in the housing market."

Senators examine home foreclosure surge
 With home foreclosures surging, senators on Wednesday examined lending practices that especially hurt minorities and seniors and can heighten the risk of default. "We are seeing increasing evidence that this important source of wealth for so many American families is under a grave threat from predatory, abusive and irresponsible lending practices undertaken by too many subprime lenders," Dodd, D-Conn., said at a hearing.

Police looking for help from victims of lawyers suspected in loan fraud
Police Chief John Romero has launched an investigation into mortgage broker scams, focusing on the involvement of local lawyers who he says took "under-the-table money" from home buyers who got duped into taking out loans they couldn't afford.

Convicted con artist shows how system flaws could allow him to steal your home
A one-time millionaire with a house on a golf course, Barber was sentenced in October to 12 years in prison for masterminding the largest mortgage fraud ever prosecuted in Missouri, and most other states too, the FBI says. He pleaded guilty to a five-year scam that involved nearly 300 properties in Kansas City, Mo., and victimized more than 80 people. Nationally, mortgage fraud has spread in the past few years, with losses totaling around $1 billion last year, the FBI says. The real estate boom, along with looser lending standards, built an ideal breeding ground for smooth-talking con artists like Barber.

Eight indicted in mortgage cases
Eight Houston-area individuals, from real estate agents to loan officers, have been indicted in connection with alleged mortgage fraud that entangled 300 homes worth more than $40 million, according to the Harris County District Attorney's Office.Mortgage fraud has become so prevalent in the Houston area that the FBI's Houston division has formed a unit dedicated solely to fighting mortgage fraud.Texas ranks seventh in the nation for loans that involved fraud, according to the Mortgage Asset Research Institute, and Houston ranks third in serious early loan defaults.

NVR Mortgage Gouges Family In Low Income Housing Program
A family of three, searching for the American dream as legal immigrants from China , came to the U.S. as father, mother and son in December of 1999...The Zhu's have since learned a costly lesson in mortgage financing. They had signed the mortgage paperwork not understanding the extent of what others, including professional bankers, consider to be exorbitant broker fees. Along with other abusive loan terms, this included a higher than average 30 year ARM that actually had a higher starting rate than most normal fixed rate mortgages.