4 comments

• Comment Link Sunday, September 28 2008 23:11 posted by SteveP

  The bail out has no provisions what so ever that are aimed at preventing a repeat of the bad loan fiasco. Specically to your question, there are no provisions to address loan level mortgage fraud. Stated income loans still okay, no requirements for borrower's income statements to be validated with the IRS, no requirements that mortgage applications be underwritten prior to funding, no requirements to improve appraisal/colateral valuation process, no requirements to prohibit convicted criminals from participating in mortgage origination, no requirements to beef up anti ID theft efforts, no requirements to improve notary integrity, etc, etc, etc. There are a bunch of provisions to reduce foreclosures and requirements to offer alternatives to foreclosure WITHOUT precluding those who obtained their mortgages fraudulently! The bail-out plan is such a waste as it will not resolve the underlying issue at hand. I only wish i could say it was joke.
• Comment Link Sunday, September 28 2008 20:21 posted by Darin

  Mortgage fraud has been rampant in the u.s. for the last few years because of all the easy lending guidelines.
• Comment Link Sunday, September 28 2008 20:18 posted by mortgage lead

  Do you know if this new rescue bill includes any provisions to fight mortgage fraud? If so what are they?
  
  Chad C.
• Comment Link Friday, September 26 2008 09:47 posted by SteveP

  When reviewing large samples of fraudulent EPD loans, one common denominators frequently revealed is a disproportionate number of borrowers of middle eastern decent. This being the case, lenders need to take it upon themselves to scrutinize any requested mortgage that has people of middle eastern decent involved in the transaction in anyway.