Posts Tagged: ‘Mortgage Fraud’

New Mortgage Demand Accompanied by Fraud Risks

October 11, 2017 Posted by kingcade

An increase in mortgage demand brings with it an increase in fraud risk, according to CoreLogic.   Analyzing only the data on purchase applications, from Q2 2016 to Q2 2017, the proportion of purchase transactions within the group increased from 55% to 66% of applications.

As a whole, during the second quarter of 2017, an estimated 13,404 mortgage applications or 0.82% of all mortgage applications contained fraud. This is compared to the second quarter of 2016 when mortgage application fraud was found on 12,718 applications, or 0.7% of all applications.

So where is the increase in fraud risk mainly coming from? CoreLogic identified the top three mortgage fraud indicators that are on the rise.

  1. Occupancy fraud risk

CoreLogic identified this as the No. 1 fraud risk.  Occupancy fraud occurs when the mortgage applicant deliberately misrepresents their intended use of the property (i.e. – primary residence, secondary residence, or investment property).  From the second quarter of 2016 to the second quarter of 2017, the occupancy- fraud indicator grew 7%.

  1. Transaction fraud risk

Transaction fraud risk increased 3.9% when compared to the same quarter last year.  This type of fraud occurs when the nature of the transaction is misrepresented, such as undisclosed agreements between parties and falsified down payments.

  1. Income risk fraud

Income fraud rounded out the top three and includes misrepresentation of the existence, continuance, source, or amount of income used to qualify for a mortgage.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.

Mortgage Fraud on the Rise- Florida Remaining the State with the Highest Risk

October 17, 2016 Posted by kingcade

Fraud is on the rise in the mortgage industry, with Florida remaining the state most at risk, according to new data from CoreLogic. More than 12,000 mortgage applications were estimated to have fraud associated with them, according to the company’s 2016 Mortgage Fraud Report.

The mortgage application fraud risk index was up 3.9% year over year from the second quarter of 2015, continuing an upward trend in fraud since 2010.

“This is consistent with the loosening of credit policy after historically tight credit policies post-crisis,” CoreLogic stated in its report. CoreLogic cited a number of factors contributing to the increase in fraud risk, including an increased share of purchase loans, the availability of higher loan-to-value mortgages and the loosening of GSE credit policies.

Florida had the highest application fraud risk, followed by New York, New Jersey, Hawaii and Washington, D.C.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Homeowners BEWARE: The Latest Foreclosure Rescue Scam- Securitization Audits

April 26, 2016 Posted by kingcade

There are many struggling homeowners on the brink of foreclosure, and scammers have been there to capitalize on it, offering “mortgage elimination” or other foreclosure tactics that in some cases are illegal.  One commonly advertised service is a Securitization Audit.

A number of companies have been pushing “forensic loan audits.” Since knowledgeable attorneys and homeowners recognize these “audits” are basically useless, scammers are now peddling, securitization audits. The supposed reason given for a ‘securitization audit’ is to determine the true owner of a promissory note. Allegedly, with this information, the homeowner can show a court that the party actually foreclosing on a mortgage is not the actual note owner.

These scammers are charging fees for information that is free to everyone.  There is absolutely no need to pay for a securitization audit, but the scammers are counting on the fact that the average homeowner does not know that.

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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

$5.4 Million Awarded to Houston Couple in Foreclosure Fraud Case

December 11, 2015 Posted by kingcade

Sometimes David does beat Goliath.  It’s a story we have heard thousands of times since the housing crisis. Homeowners fighting the big banks to try and save their homes from foreclosure. Many times arguing that the lender or servicer has no legal authority to foreclose on their home.

One Houston couple recently took on one of the nation’s largest banks- and won! David and Mary Ellen Wolf received a foreclosure notice in 2011 from Wells Fargo.  There’s just one problem- The Wolf’s had never done business with Wells Fargo or their mortgage servicer, Carrington Mortgage Services.

After discussing the situation with their neighbor, who is also a  lawyer, they determined that neither Wells Fargo nor Carrington had the legal right to foreclose on them.  The issue of mortgage notes being transferred between lien holders and servicers after the mortgage was originated is not a foreign concept, but the Wolf’s argued that Wells Fargo violated Texas law.

According to the Houston Chronicle: Wells Fargo retroactively attached the Wolfs’ mortgage to a securitized trust that was closed and sold to investors three years earlier, the bank violated a Texas law that prohibits fraudulent real estate filings. The jury agreed, although State District Judge Mike Engelhart has not formally entered the verdict, and the bank and mortgage company have not said whether they’ll appeal.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

South Florida has highest risk of mortgage fraud in the country

November 13, 2015 Posted by kingcade

According to a new report, South Florida is the nation’s capital of mortgage fraud.  Miami-Dade, Broward and Palm Beach counties have the highest risk of mortgage fraud in the country reveals the property analytics firm, CoreLogic.

Mortgage fraud typically involves hiding information from lenders so borrowers can obtain loans they would not have qualified for otherwise.  The report covered the second quarter of 2015.

The number of inexpensive foreclosed homes in South Florida has made the region more vulnerable and a magnet for fraud.  Some local scammers have even been prominent members of the community, including former North Miami Mayor Lucie Tondreau, who was sentenced to 65 months in federal prison for her role in an $11 million mortgage fraud scheme.

But according to the report, this activity is on the decline as the foreclosure inventory dwindles down.  The risk of mortgage fraud fell by 9 percent year-over-year in South Florida.

The Miami, Tampa, Orlando, Sarasota and Jacksonville markets accounted for five of the six riskiest areas in the country. (The other being New York City.) Nationwide, the value of fraudulent mortgage applications is estimated at $17.3 billion, according to CoreLogic.

Click here to read more on this story.

Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.