Press Release - California Leads the Country in Mortgage Fraud Cases

Press Release - California Leads the Country in Mortgage Fraud Cases:

'via Blog this'


The collapse of the housing market sent many homeowners into financial distress as they suddenly became underwater in their mortgages. As homeowners sought loan modifications or other ways to help ease their financial burdens, more allegations of mortgage fraud began to surface. The Financial Crimes Enforcement Network of the U.S. Treasury Department monitors mortgage fraud reports, and they have found that areas in California lead the nation in reporting mortgage fraud.

More Irregularities in California

The report from the U.S. Treasury Department, which compiled suspicious activity reports from banks and other financial institutions from July through September of 2011, showed that three of the top five cities in reported mortgage fraud were in California. San Jose had the most mortgage fraud reports in the country per capita, with Riverside coming in second and Los Angeles third. California also had three of the top five counties with the most reported mortgage fraud per capita: Santa Clara, San Bernardino and Orange.

Types of Suspicious Activity

The Treasury Department report outlined some of the types of activity lenders have reported as suspicious, including:
-Loan workouts or debt elimination attempts
-Refinancing or loan modification attempts targeting distressed homeowners
-Improper Social Security Numbers on documents requesting loan modifications

Authorities Focusing on California

Because the state has lost so much money due to mortgage fraud, many believe that it is linked to California's current budget woes. As such, authorities are stepping up their pursuit of mortgage fraud claims. Leaders at the Financial Crimes Enforcement Network have vowed to work with local officials to help investigate suspected mortgage fraud cases.

Additionally, California's Attorney General, Kamala Harris, created a Mortgage Fraud Strike Force in 2011. The Strike Force's 17 lawyers and eight special agents from the state Department of Justice investigate and prosecute "violations at every step of the mortgage process" through criminal and civil means.

Consult an Attorney

Mortgage fraud allegations are serious and have the potential to result in severe penalties including jail time and fines. If you are facing mortgage fraud charges, talk to an experienced criminal defense attorney who can help protect your interests.

Article provided by Ward Stafford Clay, Attorney at Law 
Visit us at http://www.wardclay.com/


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