Mortgage Fraudsters are getting what they deserve

In June 2008, more than 400 mortgage fraud suspects have been
arrested. It just amazes me the amount of Fraud that can be found
within our profession and I'm glad to see some of those getting
caught.

Fraud can be found from a number of sources throughout the loan
origination cycle from borrowers falsifying income documents,
appraisers overstating value and recently we have been noticing
fraudulent pictures that weren't even the subject property (we like to
report these directly to the appropriate authorty to get those
appraisers off the street), mortgage brokers and even lenders (be
warry of those individual private lenders promising to issue docs same
day).

Now more than ever shows the importance with having the right
relationships (vendors, brokers and lenders) to keep yourself out of
trouble. You need to be able to trust all parties within the loan
cycle.

Its no wonder that Alt-A and Subprime lending collapsed. I believe it
will be a matter of time when the individual investor stops funding
and all the remains will be the prime and nextgen lenders.