Question:

Why mortgage broker fraud has become so popular?

Answer:

The housing market in America bloomed and flourished during the last several years before the subprime crisis. It was easy to make money, and regulation was difficult to have. Even Fannie Mae couldn't get out clean of scandals. The US greatest mortgage financer was said to have millions to regulators not disclosing the bad loans sold to a competitor.

Mortgage broker fraud has become very popular online, from websites and online advertised businesses, through straw buyers rings, to simple forging signatures and providing false documentation.

Federal regulators have increased in number and are applying serious attempts to restrict mortgage broker fraud in one of the most lucrative markets in America.

Many lenders, appraisers and brokers have asked government regulators to go at length pursuing mortgage broker fraud responsible and request effective sentences.

The possible cause for the widespread mortgage broker fraud can be sought probably in the huge appreciation levels and booming housing market that allowed for anybody who had interest to become a mortgage broker.

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