Question:

What involves mortgage lender fraud?

Answer:

While mortgage fraud can affect thousands of borrowers, mortgage lender fraud does not only strike borrowers; there are many lender fraud cases resulting in multi-million losses for big financial institutions. The FBI and the Mortgage Bankers Association have identified many mortgage fraud schemes for more than $10 Mil, and several over $100 Mil.

The FBI has seriously begun to investigate insiders - RE agents, appraisers and closing attorneys, to prevent large-scale mortgage lender fraud. There are also some big lenders under investigation for committing mortgage lender fraud. Often, appraisers seem to either cooperate with the lender, or are threatened if they refuse to inflate properties' value.

Also, even though fraudsters are going to jail, there is little or no assistance to mortgage fraud victims who suffered foreclosure and whose credit was ruined.

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Common misspellings: mortage and morgage