What Will Keep the Fraud Out?
Written by CBS News investigative producer Laura Strickler.
Almost immediately after Obama unveiled his $75 billion foreclosure rescue plan to save up to 9 million homes from foreclosure, lawmakers jumped to criticize a strategy they say is ripe for fraud.
House Republican leadership and Senator Charles Grassley (R-IA), ranking member of the Senate Finance Committee sent letters to administration officials asking for assurances that anti-fraud measures will be put in place to guarantee that taxpayer dollars are not used to re-do mortgages that were originally based on fraudulent documentation. Grassley notes that experts in mortgage lending say that anywhere from 30-70% of all mortgages inked in the last few years were based on fraudulent claims of assets or income.
The Treasury Department is considering a new computer program developed by Smithfield and Wainwright, a real estate business out of Florida known as "Mo-Mod." A company spokesperson says the product can modify up to a million loans per month.
Some in the mortgage industry doubt that an automated program could catch fake documentation.
"You've got to get a human into there and look at it to underwrite it so that you can properly assess the risk," Jon Daurio of Kondaur Capital Corporation in Southern California told CBS News. "I do a full documentation. I am verifying that income, getting tax forms, bank statements, etc. and I want to verify that that gross income is accurate," he said.
But the "Mo-Mod" automated system under consideration by the Treasury Department will not re-examine the original W-2s or paystubs.
Hogan Copeland who goes by the name "Big Hogan" developed "Mo-mod" through his company Smithfield and Wainwright. Copeland told CBS News if his company is involved they will only be conducting appraisals not determining the homeowner's true income or credit history. "We are not forensic accountants, that's the bank's determination, that's not Big Hogan's determination," he said. "We will be evaluating the house, that's the piece in question, that's the hottest button right now."
Copeland says if the government uses "Mo-Mod", his team of 23,000 "independent and unbiased" appraisers nationwide would immediately begin to appraise foreclosed homes or those on the edge of foreclosure. Copeland notes that his network of appraisers would use a nationwide set of standards based on at least 20 data points to get at the new value of each home, "It's just coming back to reality," he said.
By Laura Strickler
Copyright 2009 CBS. All rights reserved. Almost immediately after Obama unveiled his $75 billion foreclosure rescue plan to save up to 9 million homes from foreclosure, lawmakers jumped to criticize a strategy they say is ripe for fraud.
House Republican leadership and Senator Charles Grassley (R-IA), ranking member of the Senate Finance Committee sent letters to administration officials asking for assurances that anti-fraud measures will be put in place to guarantee that taxpayer dollars are not used to re-do mortgages that were originally based on fraudulent documentation. Grassley notes that experts in mortgage lending say that anywhere from 30-70% of all mortgages inked in the last few years were based on fraudulent claims of assets or income.
The Treasury Department is considering a new computer program developed by Smithfield and Wainwright, a real estate business out of Florida known as "Mo-Mod." A company spokesperson says the product can modify up to a million loans per month.
Some in the mortgage industry doubt that an automated program could catch fake documentation.
"You've got to get a human into there and look at it to underwrite it so that you can properly assess the risk," Jon Daurio of Kondaur Capital Corporation in Southern California told CBS News. "I do a full documentation. I am verifying that income, getting tax forms, bank statements, etc. and I want to verify that that gross income is accurate," he said.
But the "Mo-Mod" automated system under consideration by the Treasury Department will not re-examine the original W-2s or paystubs.
Hogan Copeland who goes by the name "Big Hogan" developed "Mo-mod" through his company Smithfield and Wainwright. Copeland told CBS News if his company is involved they will only be conducting appraisals not determining the homeowner's true income or credit history. "We are not forensic accountants, that's the bank's determination, that's not Big Hogan's determination," he said. "We will be evaluating the house, that's the piece in question, that's the hottest button right now."
Copeland says if the government uses "Mo-Mod", his team of 23,000 "independent and unbiased" appraisers nationwide would immediately begin to appraise foreclosed homes or those on the edge of foreclosure. Copeland notes that his network of appraisers would use a nationwide set of standards based on at least 20 data points to get at the new value of each home, "It's just coming back to reality," he said.
By Laura Strickler
Apparently you did not investigate enough. Because Kondaur Capitol and Other servicing companies are commiting fraud on a daily basis. Mr.Jon Daurio of Kondaur Capital Corporation needs to tell his company to better check there accounting records of loans they acquire. Apparently many, many, many Americans are getting foreclosed on because of false reporting of payments by various servicing companies. Mortgage fraud goes beyond origination of a loan, he can triple check personal records all he wants it wont fix servicing companies from pocketing billions of hard earned dollars Americans are getting cheated out of.
Reno, Nevada?s Countrywide Home Loans manager Sue Barry should also be charged with Mortgage Fraud, along with Prudential Nevada Realty former Regional Manager Valerie Mapes, former Prudential Nevada Realty Realtor Keith W. Gledhill, Mortgage Fraudster Reno landlords John and Kay Sickler, Mortgage Fraudster Reno escrow officer Jenna Kay Clark and her company Reno?s First American Title, Reno Realtor Allan Zane and his Broker Magi Bird, and Reno?s First American Title.
http://reno.broowaha.com/article.php?id=3415
http://reno.broowaha.com/article.php?id=3300
http://reno.broowaha.com/article.php?id=3320
http://reno.broowaha.com/article.php?id=3351
http://reno.broowaha.com/article.php?id=3372
http://reno.broowaha.com/article.php?id=3377
http://reno.broowaha.com/article.php?id=3397
http://reno.broowaha.com/article.php?id=3404
http://reno.broowaha.com/article.php?id=3421
http://reno.broowaha.com/article.php?id=3430
http://reno.broowaha.com/article.php?id=3448
For copies of the supporting documents that have been uploaded, see http://renomortgagefraudexposes.ning.com/
AUTHORITIES are ignoring that the most lethal factor of the mortgage crisis is FORECLOSURE FRAUD. It happens when DEBT COLLECTOR ATTORNEYS deliberately file court cases of foreclosures under names of defunct mortgage companies, or companies which do not own the promissory notes. Fraudulent foreclosure proceedings mean that people actually HAVE NOT lost ownership of their properties, and evictions are illegal, but those homeowners don?t know it. For predatory and deceptive mortgage lenders, foreclosure frauds are bonanzas because it creates real estate FLIPPING fraud, and misleads Investors concerning housing markets. SEE: http://www.lawgrace.org/2008/09/14/lehman-brothers%E2%80%99-mortgage-troubles-nationally-evidence-of-foreclosure-fraud-deception-and-conspiracy-with-wells-fargo-deceptive-judicial-filings/
These collectors commit extortion by confiscating properties illegally and charge fees far beyond "Acceleration Clauses," thereby making it impossible for borrowers to recover their properties or bring current the mortgage arrears. SEE: http://chuckgallagher.wordpress.com/2008/01/03/foreclosure-fraud-an-interesting-variation-of-mortgage-fraud-comments-ethics-speaker-chuck-gallagher/. When property owners sue for "Unfair Debt Collection Practices," etc, collectors make even more $$$$ through protracted litigations. (*An example of protracted foreclosure litigation in lawsuit: ?Super Future Equities v. Wells Fargo Bank, et al.?)
Additionally, an alarming amount of unscrupulous debt collector attorneys are committing amazing fraud in Bankruptcy Court because of ?lift stay? motions they filed via use of names of an entities which have no ?standing,? or have no ?real party interest.? Put plainly, foreclosed homes are an alarming epidemic, but it does not mean that all foreclosure proceedings are lawfully executed. The BIG picture is that there are thousands of people who being rendered homeless, yet those judicial proceedings to take those homes were dishonest, in violation of law, and in too many cases criminal. In a nutshell, NOT UNTIL a valid foreclosure case is filed in court, can a valid loss of the home occur. Unfortunately, in light of the nationwide MORTGAGE MESS, most likely foreclosure fraud exists on a NATIONAL LEVEL. For further reading, irrefutable proof and extensive details about how proudfully foreclosure real estate frauds are being carried on, check out: Law & Grace, Inc @ http://www.lawgrace.org.
Is it from noticing that POLITICS IS NOTHING BUT A NON-STOP LYING CONTEST???
Posted by zokin at 08:07 PM : Feb 18, 2009
Bring a thick rope for Barney Frank.
He looks heavy.
Posted by hadenough43 at 07:56 PM : Feb 18, 2009
You just can''t answer the question, can you.
Because YOU DON''T WANT TO SAY IT.
DEMOCRATS ARE TO BLAME
Nothing is more laughable these days than a republican mouthing pieties about fraud. Or any other subject remotely related to money or finances.
Posted by hadenough43 at 07:43 PM : Feb 18, 2009
So that makes it OK for Democrats like Barney Frank and Chris Dodd???
They just get a free pass???
DEMOCRATS ARE TO BLAME for this.
Posted by rm090218
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You can say it a thousand times, dude. You can say it ten thousand times....but that don''t make it true!!
Just like the Communists.