This is strong stuff -- have we proof?
Mortgage fraud has turned entire city neighborhoods and suburban developments into vagrant-riddled ghost towns. Block after block in many cities are vacant, due to real estate crime, sub-prime foreclosure and abandonment. As banks foreclose on many of these over-priced homes, the homes remain vacant because the phony appraisal don’t reflect their actual value and no one is going to buy a house encumbered with a loan, which exceeds its worth.
The government has active investigations on several high profile banking, mortgage and real estate organizations, and has set hundreds of crooked insiders to prison. According to a compilation of press releases from the United States Department of Justice and industry sources, the cases involve everything from phony title insurance to assigning phony ratings to shaky investment bonds, including an Indiana couple’s charge that a bank failed to follow specific Truth in Lending regulations.
Mortgage fraud is big business, especially for organized crime. Analysts claim that in Japan, the Yakuza is responsible for at least ten per cent of the nation’s mortgage fraud. Drug rings and organized crime have become so involved in mortgage fraud, that police officers in many metro areas are now concentrating on mortgage fraud and money laundering.