According to the creators of LienCode and more importantly the Federal Bureau of Investigation (FBI), “Mortgage fraud is a pervasive and growing problem,” and with $4 to $6 billion being lost annually to this crime, it is a problem that cannot go unnoticed nor ignored. The FBI reported a 1,411 percent jump in reports of mortgage fraud between 1997 and 2005, and in 2008, the total Mortgage Fraud Suspicious Activity Report (SARs) reached 63,173 with more than $1.5 billion in losses.
Who is affected?
Mortgage fraud has a vast impact on the livelihood of many individuals, families and businesses throughout the U.S. Victims of this crime include but are not limited to homeowners, non-profit organizations, title companies, corporate entities and mortgage lenders. To get a better idea of how these entities are victimized by mortgage fraud, take a look at some of our case studies and check out our news feed, which will keep you up to date with the latest in mortgage fraud cases.
How it happens?
Mortgage fraud occurs mainly through the falsification of deeds of trust, liens and releases of deeds of trust, identity theft, and the creation of non-existent sellers and buyers.
Why?
Government registrars only function to receive documents such as liens, deeds and releases and they have no responsibility to determine if a document is legally effective, accurate or authentic. The registrars simply serve as document repositories.