That’s the big clue to me, the acronym “FBI”, or any government agency for that matter. They all have one thing in common, they can’t be trusted! So, when I read a story like this that indicates rampant mortgage fraud still taking place, and the finger being pointed at “organized crime” organizations in several countries, I really have to raise an eyebrow. Not that it doesn’t exist at all, but something tells me that these numbers are slightly skewed.
Leave it to our government to continue the propaganda. Ironically, this is the first I’ve ever heard of such a story. Why haven’t the banks been reporting this? Why is it now coming from the FBI’s investigation? You would think the banks would be jumping up and down screaming about these losses from fraudulent mortgages. How could this happen? Why aren’t the banks responsible for having measures in place to protect this? They were handed, I mean bank CEOs were practically gagged and tapped to a chair while millions were stuffed in their top pockets for them to fix their problems…or to pay out executive bonuses, which to them is the fix! They’ve determined that the best way to solve the people’s problems is by lining their own pockets.
As usual our government will look for someone to blame for the mortgage crisis, and the president will go on TV and wave his fingers on how he will be cracking down on financial institutions, and all of the other nonsense they are feeding you. This way they can justify the lack of money out there or the stingent lending practices, and use vague newstories like this to continue to manipulate people. Let me help you out, the banks NEVER lose! The banks represent the government so this is a charade that we continue to get caught up in.
These so called “mortgage schemes” involve loan origination, foreclosure-rescue initiatives, short sales, property flipping, equity skimming, builder bailouts, and reverse mortgages. Could you be more vague than that? First off, any fraud coming from loan origination or directly related to a mortgage product like reverse mortgages is the responsibility of the mortgage professionals and lending institutions. If the banks can’t get it right by now they should not have the ability to write loans. Fraud that is taking place at that level should lead to arrests and breaking news stories that I’m still yet to hear.
I also never knew that property flipping, short sales, or builder bailouts were illegal. It’s funny that government “bailouts” are okay, but when there’s a bailout without the government involved it’s “fraud”. As a decade-long investor and ex-mortgage professional of many years, I’ve learned one thing. THE GOVERNMENT DOESN’T LIKE IT WHEN PROPERTY INVESTORS PROFIT. Isn’t it crazy? The same people helping the market are shunned. They invest their time and money into a property to sell or “flip” for a profit. Isn’t that how it’s supposed to work? How are short sales fraud? They are scrutinized to the hilt by the banks, and the bank controls the deal, even approving the sale price, hardship package, etc. Where’s the fraud? Where is the accountability by the bank?
As I encourage my real estate clients, always look to credit unions, small local banks, or private money in obtaining mortgage financing. Otherwise you’re just feeding the beast. When you see newstories like this you should always read between the lines…it is put out there deliberately to distract us from what is really going on. While most people think, “Oh, it’s from the FBI so it must be true!” I think the exact opposite! Who is really committing mortgage fraud?