Mortgage Fraud Servicing Inspection.
Preventing fraud:
Everyday we hear about more company fraud. Is it on the increase? We are familiar with on-site field inspection proceedures that can help stop fraud from ever occuring. If employees know that their work is going to be checked on a regular basis, there will be less cutting corners and company fraud.
Preventing fraud requires attention to the work environment, control systems and specific anti-fraud procedures. The three most common conditions where fraud occurs are when there is the perception that it won’t be caught, the opportunity to commit fraud, and the rationalization that the company “owes” the perpetrator more than he/she is getting in compensation. Here’s how to prevent business fraud.
1. Start by creating a work environment that defines and reinforces anti-fraud behavior. Owners and senior managers lead the way by communicating clearly that the company is committed to always doing the right thing with employees, customers and vendors, even if it means a higher cost to the company. If the leaders cut corners or shade the truth, there is no reason to believe those who follow will behave differently.
2. Establish clear written policies for all procedures and processes. Include an Ethics Policy that specifies how the company defines fraud and the actions management will take when it is discovered. Make sure all employees have a copy of the policies so no one can claim ignorance later. Then, enforce the policies fairly and consistently.
3. Make a background check a routine part of the hiring process for all employees. Check vendors’ dealings with other companies before approving them. Ask for references and check them.
4. Set up a system of internal controls. Segregate duties such as making deposits and reconciling bank statements, approving and paying invoices, authorizing and signing checks, keeping payroll records and writing payroll checks, and receiving payments and posting them to accounts receivable. In smaller companies with few employees, the owner may have to perform some of these duties himself.
5. Increase the perception of detection. The single most effective way to prevent fraud is to make it clear that it will not go undetected. Cross train employees to cover vacations and illness, and make all the internal controls visible. When people know someone is watching or will be following up on their work, they are more likely to follow policies consistently and less likely to try to bypass them.
6. Guard the physical custody of bank accounts, petty cash, marketable securities, and blank checks. Take inventory regularly and spot check randomly.
7. Schedule an unannounced field inspection today.
Homeowners Beware: Forensic Loan Audit Scam...Thousands Have Been Scammed
http://realestate.aol.com/blog/2011/09/26/homeowners-beware-forensic-loan-audit-scam/?icid=maing-grid10%7Chtmlws-main-bb%7Cdl12%7Csec3_lnk3%7C99354
Tags: Accelerated Equity Development, Fair Housing Law Project, forensic loan audits, Homeownership Preservation Foundation, mortgage modification, mortgage modification scams, mortgage scams, New Century Solutions, real estate fraud, Tila
Where There Is Opportunity, There Will be Mortgage Fraud...
Mortgage fraud continued at elevated levels during 2010, according to the Federal Bureau of Investigations (FBI) 2010 Mortgage Fraud Report. The FBI, with its partners, dedicated significant resources to the issue of mortgage fraud over the past year and saw a number of investigative successes. The FBI feels that the current housing market will likely remain an attractive environment for mortgage fraud criminals in the near future who will seek new methods to circumvent loopholes and gaps in the mortgage lending market.
**Mortgage fraud perpetrators include licensed/registered and non-licensed/registered mortgage brokers, lenders, appraisers, underwriters, accountants, real estate agents, settlement attorneys, land developers, investors, builders, bank account representatives, and trust account representatives.
**Analysis of available law enforcement and industry data indicates the top states for known or suspected mortgage fraud activity during 2010 were California, Florida, New York, Illinois, Nevada, Arizona, Michigan, Texas, Georgia, Maryland, and New Jersey; reflecting the same demographic market affected by mortgage fraud in 2009.
**Prevalent mortgage fraud schemes reported by law enforcement and industry in FY 2010 included loan origination, foreclosure rescue, real estate investment, equity skimming, short sale, illegal property flipping, title/escrow/settlement, commercial loan, and builder bailout schemes. Home equity line of credit (HELOC), reverse mortgage fraud, and fraud involving loan modifications are still a concern for law enforcement and industry.
The current and continuing depressed housing market will likely remain an attractive environment for mortgage fraud perpetrators who will continue to seek new methods to circumvent loopholes and gaps in the mortgage lending market. These methods will likely
remain effective in the near term, as the housing market is anticipated to remain stagnant through 2011.
http://nationalmortgageprofessional.com/sites/default/files/2010_FBI_Fraud_Report_08_12_11.pdf.
Field Guide to Mortgage Fraud
(Updated July 2011)
Mortgage fraud has become one of the most notorious crimes in the United States. It has left many home owners with "underwater" mortgages that are substantially higher than the valued price of their home, many lenders with defaulted loans and foreclosed homes, and many real estate professionals in the precarious position of needing to rigorously screen new clients' financial portfolios while keeping apprised of major regulatory changes and new procedures. Learn about the different types of mortgage fraud and discover how to recognize the signs, take precautions, and report incidents.
Recognizing the Signs
Mortgage fraud may include, but is not limited to:
• Property flipping
• False and inaccurate appraisals
• Equity skimming
• Application fraud
• Credit or income misrepresentation
• Asset and down payment misrepresentation
http://www.realtor.org/library/library/fg330
Servicers to Face New State Laws, Calls for Moratoria...The ongoing crisis-related confrontation between state regulators mitigating customer rights and trade organizations vouching for the mortgage industry continues to generate new regulatory updates that increase the foreclosure backlog.In the past two years many states have proposed and passed new laws that regulate how foreclosures are conducted adding new legal barriers to mortgage servicers who all along have been struggling to understand and comply with the Dodd-Frank Act and other area-specific regulations.
http://www.mortgageservicingnews.com/msn_features/-1026051-1.html?zkPrintable=1&nopagination=1
Fannie Report Warned of Foreclosure Problems in 2006
"Fannie Mae took the necessary steps to address the specific issues identified by the 2006 report and regularly evaluates and enhances oversight of its retained attorney network," said a Fannie Mae spokeswoman.
But then Fannie states...
Fannie officials also told investigators that the company had opted against performing regular reviews of its foreclosure attorneys because the company's lawyers felt the firm would be better insulated from responsibility for misconduct.
http://online.wsj.com/article/SB10001424052748703784004576220582457540372.html?mod=googlenews_wsj#printMode
Mortgage Servicing Fraud
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Learn the truth behind the largest financial scam in history.
Register today and build your FREE PROFILE. We'll notify you when our proprietary "Case Brain" software finds cases posted on our site for which your profile matches the profile provided by the law firm. You can then elect to send your profile to the designated contact for each case your profile is a match for.
If you think that you have been treated unfairly by your mortgage lender in any way, we invite you to take action by putting "Case Brain" to work for you. Thousands of people are coming together in mass action cases across the country to force the banks to do the right thing. There is strength in numbers and these cases will force the banks to listen. Complete your profile today and SPEAK YOUR VOICE!!
http://www.bankclassactions.com/?gclid=CNvLypCez6oCFWMTNAodPWgPzw
ELECTION 2012 IS COMING
A Nation of Sheep Breeds a Government of Wolves! Less Government means more private sector JOBS! Take a stand!!! Remember you are the government.
WE ARE SUPPOSE TO HAVE GOVERNMENT FOR THE PEOPLE, BY THE PEOPLE!! Government-get out of Small Business!
Motor Vehicle Electronic Lien Holders
http://bmv.ohio.gov/registration_electronic_lienholders.stm
An Electronic Lien Title (ELT) is a title record that is being held in an Electronic status with a lien on the vehicle. The only difference between an E-Title and an Electronic Lien Title (ELT) is that there is a lien on the ELT. In both cases, a paper title has NOT been printed.
Third party rental management, third party claims management, third party loss mngt:
Beginning in July 2011, the Maryland Home Improvement Commission will host a workshop to inform homeowner and contractors about the Guaranty Fund process. The free workshops are held on the 3rd Thursday of every odd-numbered month (January, March, May, July, September and November) at 2 p.m. at 500 North Calvert Street, Baltimore, MD 21202, in the 2nd floor conference room. Please use the Centre Street entrance. If you plan to file a claim, or have already filed a claim and would like more information about the claim review process, or if you are a contractor against whom a claim has been filed, this workshop will provide valuable information to you. The workshop will help participants learn more about the Guaranty Fund and the claim process. Please note that we will not discuss specific claims during the workshop. Pre-registration is not required. For more information, please send an email to mhic@dllr.state.md.us or call 410-230-6309.
Contractors' Liens: Select State Laws- Real Estate legal information and lawyers at FindLaw.com
MARYLAND A lien cannot be filed unless the value of the improvements equals at least 15 percent of the property value. A contractor cannot obtain a lien until suit is filed and a court orders the lien. Once obtained, however, the lien has priority over other liens filed after this court determination.
http://realestate.findlaw.com/contractors-home-improvement/state-contractor-liens.html
Some Property Preservation Mechanics Break Windows
Several years ago I published a survey asking about how property preservation mechanics break into vacant foreclosure homes. The choices were (1) pick the lock; (2) break the lock; (3) pull the lock cylinder with a Kwikset cylinder puller. I had three choices. I needed another choice. So I added a fourth choice of "breaking the window". I never expected that anyone would choose breaking a window as a means of access. That is no a good choice. SURPRISE! SURPRISE! Yes there were a few who picked "breaking a window" for access.
Don't break windows.
Banks Have Hijacked Society
“The Black Swan” author and economist Nassim Taleb says that repeated bailouts have made it possible for banks to hijack society.
"The bad news is not another recession, it's not figuring what got us here and continuing to make the same mistakes," Taleb tells the BBC. Taleb says there's a tumor in the center of the financial system that has not been removed, one he calls "an agency problem." This happens when people make money they receive bonuses, but when they lose money, taxpayers and future generations pay the price.
"The core of the problem is that asymmetry in payoff socializing losses and privatizing gain and the generator of that inequity is still there, worse than ever." (Banks) got us here, and they’re reaping the benefits,” says Taleb. “As an industry, they have not suffered” and the Federal Reserve is “doing everything it can to finance these bonuses.” “I’m outraged. Banks should be something other than machines that generate themselves bonuses. Today, banks are vastly more centralized than they were before the crisis … much more powerful than they were before (and) they have an incredibly sneaky lobby in Washington.” Morgan Stanley Asia non-executive chairman Stephen Roach says debt forgiveness by banks should be a part of economic rebalancing. "If you come up with ways to forgive the excesses of mortgage, installment and revolving credit as was done in the 1930s, that will help consumers get through the pain of balance deleveraging sooner rather than later," Roach tells CNBC.
Read more: 'Black Swan' Author Taleb: Banks Have Hijacked Society
Inspectors Working For Other Inspectors ... Lots Of Problems!
The HIGHEST RISK in the field services industry is mortgage inspectors working for other mortgage inspectors and property preservation subcontractors working for other property preservation subcontractors. I sometimes hear about two or three different problems in the same day. Most major insurance carriers place a very high value on inspection services. To these companies, the inspections are not viewed as an expense, but rather an investment. The return from this investment comes in the form of reduced hazards resulting in fewer claims and higher profits from increased premiums.
The Field Representative’s role is to make detailed observations of all sides of the dwelling, from top to bottom, including a visual inspection of the roof from ground level. In addition, the Field Representative will note the type and condition of all outbuildings, inspect the premises for hazards and examine the surrounding area for any exposures. The Field Representative will note any concerns and obtain photographs of the property and any hazards. Most exterior inspections should take you approximately 10-15 minutes to complete.
11 tips for dealing with debt collection, collectors
It's something most consumers dread -- a debt collector calling to ask about an unpaid credit card debt, past due student loan or medical debt.
Take your head out of the sand. Don't ignore letters or phone calls about debts or court notices about debt lawsuits. The law allows consumers to send written requests for verification of debt within 30 days of being contacted by a debt collector. Don't dawdle if the debt isn't yours: Debt collectors can place negative information on your credit report that remains there for seven years, which can affect your ability to get a mortgage or other loans, cheaper car insurance rates or even jobs.
*Keep copies and records...keep them as long as you would keep tax documents
*Get it in writing. Any agreements for making debt collection payments should be confirmed in writing and signed by a representative of the debt collector before sending in any payments.
*Certify that mail. Letters can be lost in the mail. Most experts advise sending all correspondence with debt collectors via certified mail. You can easily print USPS mail labels, and pay for them, on PayPal.com.
* Safeguard bank accounts. Debt collectors can file suit against consumers for nonpayment of debts. Freezing savings or checking accounts is one of the court-ordered options for collecting debts. This can be extremely problematic for family budgets and cash flow, and experts advise having separate bank accounts for funds such as Social Security or disability checks, which are exempt and cannot be used as a source of court-ordered debt payments. "I would urge people not to co-mingle other funds into the bank account to which the Social Security and disability payments are going. That would help a lot of people," says Rozanne Andersen, executive vice president of ACA International, the largest credit and debt collection industry trade group. "It would be a lot easier for the consumer to clarify to the debt collector that the only funds in this account are my Social Security payments."
Credit Dispute: Free Form Letter
Courthouse or Collection Agency accounts ... __ Discharged __ Collection was paid __ Other (explain) ... I certify that all information above is true and factual. ...
www.oskie.com/credit-dispute.htm
Free Sample Letters of Credit - Dispute Letter to Creditors
It is my firm decision not to recognize or work with any collection agency. ... I have sent this letter certified mail because I need your prompt response to this issue. Please be so kind as ... Sample Letter - Explanation of Delinquent Account. Date: ...
www.creditservicer.com/pages/credit-repair/free-sample-letters.
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