Mortgage Fraud

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WHAT ARE THE SIGNS THAT THIS IS A SCAM?

Without your solicitation, an individual offers to assist you in obtaining a mortgage for a home or property. As your representative, he/she completes a majority of your paperwork for you and insists that you work with only certain appraisers or financial experts. This representative may also request to borrow an amount larger than the cost of the property.


 HOW CAN CONSUMERS PROTECT THEMSELVES?

Consumers should first contact a HUD certified counseling agency. Their services are free and they can help you navigate your lender process. See www.hud.gov for a list of certified agencies.

Be sure to check the credentials of anyone who purports to be a ‘mortgage specialist’. Investigate the company, if applicable, through Better Business Bureau (www.cincinnati.bbb.org) and trust your instincts.

Get involved in your mortgage proceedings. While the process may be confusing, it is important that you to stay informed of and attentive to every aspect of a borrowing process involving your money. Conversations about your loan should be held with certified counseling agency or an agency licensed under the federal SAFE ACT. Check www.stateregulatoryregistry.org/NMLS for licensed broker listings.

Do your research and seek recommendations from trusted friends and colleagues whenever possible.


HOW TO REPORT IF YOU'VE BEEN A VICTIM

Your bank or mortgage lender: Mortgage fraud is not a crime against only you; this type of fraud also scams banks and lenders out of money because the fraudulent loan amount is often too much for borrowers to pay back, and the loan goes into default. You are left with financial ruins, and the lender is never paid back the loan. If you suspect your mortgage is being fraudulently administered, immediately contact the bank or lender and begin sorting out the information that is being processed.

Federal Bureau of Investigation (FBI): You should also contact the FBI’s Cincinnati office (513-421-4310) to report any mortgage fraud information that could be investigated by the Cincinnati Metropolitan Area Mortgage Fraud Task Force, which is comprised of federal, state, and local law enforcement agencies, to include the Cincinnati Police Department and the Hamilton County Sheriff’s Office.


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For more information on preventing homeowner and rental fraud, visit these Web sites:

Federal Trade Commission – Foreclosure rescue scam

Freddie Mac – Mortgage fraud

Financial Fraud Enforcement Task Force – Mortgage, Loan and Lending Fraud

Ohio Attorney General’s office – Home repair fraud

www.rentalfraud.org