Real Ralph

More Lawsuits Target Mortgage Scams

Ralph Roberts — Mon, 05 Mar 2007 17:55:10 +0000

Big lenders and Wall Street investors are going after Arizona mortgage brokers, appraisers, real estate agents, title firms and home buyers for fraud, reports Catherine Reagor of The Arizona Republic:

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Illegal Flipping Targets Investors, Too

Ralph Roberts — Fri, 02 Mar 2007 17:48:05 +0000

Buy a $2 million dollar house for $1.5 million? That's what some con artists would have you believe in a fairly common illegal house flipping scheme that targets novice real estate investors.

Real Ralph

Some of the Comments We Receive

Ralph Roberts — Wed, 28 Feb 2007 17:47:10 +0000

Thousands of people visit this site each week, which makes for some interesting comments. From Cindy Schnackel of Homeowners Against Deficient Dwellings, commenting on "Cash Back at Closing Deals Lead to Mortgage Firm's Closure in Arizona":

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Cash Back at Closing Deals Lead to Mortgage Firm's Closure in Arizona

Ralph Roberts — Mon, 26 Feb 2007 20:55:24 +0000

Still want to argue with me about the legality of Real Estate deals involving cash back at closing? That's fine because now I am going to bring the Arizona Department of Financial Institutions' superintendent, Felecia Rotellini, to the table.

Real Ralph

Community Reinvestment Act Offers Are Not Legit

Ralph Roberts — Fri, 23 Feb 2007 20:53:52 +0000

Last week, the Federal Reserve Board alerted the public to instances of questionable solicitations directed at homeowners. The Federal Reserve has received inquiries and complaints from recipients of direct mail solicitations that suggest there is a "Community Reinvestment Act (CRA) program" that entitles certain homeowners to cash grants or equity disbursements. Some of these solicitations may be read to indicate that the Federal Reserve endorses or supports the offers they contain. These solicitations appear to be a deceptive effort to encourage consumers to apply for a mortgage loan secured by the consumer's home.

Real Ralph

Fighting Back Against Housing Discrimination

Ralph Roberts — Tue, 20 Feb 2007 20:52:44 +0000

Everybody knows that discriminating against anyone based on race, color, national origin, religion, sex, familial status, or handicap (disability) is illegal and immoral, but discrimination continues. The passage of the Fair Housing Act in 1964 curbed some of the abuse, but it simply forced a few holdouts to be more careful and subtle.

Real Ralph

Expect a Major Shakeout in the Subprime Mortgage Industry

Ralph Roberts — Fri, 16 Feb 2007 20:51:03 +0000

There was an interesting article in yesterday's Wall Street Journal about how efforts by major U.S. banks and investment firms are trying to unload bad housing loans, and about its speeding up a shakeout in the subprime mortgage industry. Excerpted from the Wall Street Journal:

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New Study Finds Fraud Linked to Early Loan Default

Ralph Roberts — Tue, 13 Feb 2007 20:49:34 +0000

Earlier this month I wrote about First American Real Estate Solutions' strategic alliance with CoreLogic Systems. Another company strategically aligned with First American is BasePoint Analytics, a provider of scientific fraud analytics and consulting services. Yesterday, BasePoint released the results of a new study that shows that up to 70 percent of early mortgage payment defaults can be linked to significant misrepresentations on loan applications.

Real Ralph

Florida Finally Issues a Mortgage Fraud Advisory

Ralph Roberts — Mon, 12 Feb 2007 20:48:05 +0000

It took nearly 13 months and a change in administration, but Florida's Attorney General's Office has finally issued an official consumer advisory warning Floridians of common mortgage fraud scams. Back in January of 2006'as evidenced by this blog entry, I sent a letter to each and every states' Attorney General warning of the growing problems associated with real estate and mortgage fraud.

Real Ralph

First American Real Estate Solutions Merges with CoreLogic Systems to Bring More Firepower to the Fight Against Real Estate Frau

Ralph Roberts — Mon, 05 Feb 2007 20:47:06 +0000

The First American Corporation'one of North America's largest providers of business information'today announced that it has merged its Real Estate Solutions division with Sacramento, California-based CoreLogic Systems, Inc., a provider of mortgage risk assessment and fraud prevention solutions for the Real Estate industry. In 2006, First American's Real Estate Solutions generated $252 million in revenues, while CoreLogic pulled down approximately $74 million. The merger is the largest transaction in a series of acquisitions completed by First American in recent years, and is a part of a larger domestic and international mortgage risk analytics strategy.

Real Ralph

Radio Interview on Flipping Houses Scheduled for Later This Morning

Ralph Roberts — Sat, 03 Feb 2007 20:44:28 +0000

My apologies for sharing this information so close to the time it's scheduled to occur, but in about 30 minutes I will be interviewed by Matthew Bronson, host of AM 920/WMEL's "At Home" in Melbourne, Florida, about flipping houses

Real Ralph

Court of Appeals Upholds Realtor's Conviction in Mortgage Fraud Scheme

Ralph Roberts — Thu, 01 Feb 2007 18:16:09 +0000

A former Spokane, Washington, Realtor who claimed she was just following widely accepted practices in the real estate industry has been sentenced to serve two-and-a-half years in federal prison and pay $264,406.00 in restitution for her role in a $1.4 million mortgage fraud scheme.

Real Ralph

Credit Enhancement Dupes Lenders into Approving Risky Loans

Ralph Roberts — Wed, 31 Jan 2007 18:15:05 +0000

I field a lot of phone calls from newspaper reporters trying to understand the 3 S's of real estate and mortgage fraud: Size, Scope, and Specifics. Any mention on my part that "credit enhancement' is one specific we should all be concerned about, and I am usually greeted with uncomfortable silence followed by something along the lines of, "What's credit enhancement'

Real Ralph

2006 Foreclosure Filings Up 42 Percent Over 2005

Ralph Roberts — Fri, 26 Jan 2007 15:24:59 +0000

A report released yesterday by RealtyTrac shows more than 1.2 million foreclosure filings were recorded nationwide in 2006, up 42 percent from 2005. The 2006 RealtyTrac Foreclosure Market Report also revealed that there is one foreclosure filing for every 92 U.S. households.

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Arizona State Senator Proposes Mortgage Fraud Legislation

Ralph Roberts — Tue, 23 Jan 2007 15:21:22 +0000

On the heels of The Arizona Republic's ground-breaking article on cash back at closing schemes, an Arizona State Senator is attempting to revise a state statute to make it a crime to misrepresent financial information when attempting to purchase a home or obtain a home mortgage. AZ State Senator Jay Tibshraeny (R, 21st Dist.) yesterday introduced Senate Bill 1221, which states:

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State of Arizona Says Cash Back at Closing Deals Are Illegal

Ralph Roberts — Mon, 22 Jan 2007 15:19:38 +0000

Left unchecked, cash back at closing deals cost homeowners and lenders millions of dollars, and according to an in depth article in yesterday's The Arizona Republic, could erode confidence and values in Arizona's real estate market. From yesterday's online edition of the Republic:

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FBI Aids in Houstonian's Sentencing in Mortgage Fraud Case

Ralph Roberts — Mon, 15 Jan 2007 15:18:27 +0000

The United States Attorney for the Southern District of Texas, along with special agents from the Federal Bureau of Investigation combined efforts to convict a Houston, TX, man for his role in a multi-million dollar mortgage fraud scheme. At a hearing held last Friday before a United States District Judge, Lawrence Benham was sentenced in connection with his guilty plea to wire fraud and mail fraud involving a financial institution.

Real Ralph

The Elephant in the Room: Looming Foreclosure Epidemic

Ralph Roberts — Thu, 11 Jan 2007 15:16:59 +0000

At industry events lately, real estate professionals gather to talk shop and discuss market trends for 2007, but I notice that nobody's talking about the elephant in the conference hall. We're predicting the health of the market. We're exploring new technologies. We're trading secrets. We're swapping ideas and business cards. But the silence over what I believe is a looming foreclosure epidemic, is deafening. Nobody utters the words "flipping," "fraud," or "foreclosure." It's almost as if these three words have been banned from the industry.

Real Ralph

Colorado's Attorney General Proposes Legislation to Curb Mortgage and Foreclosure Fraud

Ralph Roberts — Tue, 09 Jan 2007 15:13:48 +0000

In an ongoing effort to curb mortgage and foreclosure fraud in his state, Colorado's Attorney General announced yesterday a legislative proposal that targets appraisal fraud and mortgage brokers who engage in deceptive trade practices.

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Wrap-up & Invite: Free Teleconference Call on Real Estate Fraud

Ralph Roberts — Wed, 03 Jan 2007 15:12:40 +0000

Last night I hosted a teleconference call with consumers and real estate industry insiders from across the country. The topic: How to avoid real estate and mortgage fraud, and what to do if you believe fraudsters and scammers have targeted you. The teleconference, attended by nearly 45 people, was the first in a series of free calls I will be hosting at 7:00 p.m. Eastern Time the first Tuesday of each month.

Real Ralph

Real Estate Fraud in Virtual Space?

Ralph Roberts — Tue, 02 Jan 2007 15:11:18 +0000

Have you ever heard of Second Life? For the uninitiated, Second Life is an online subscription-based 3-D virtual world where registered users can explore, meet new people, participate in individual and group activities, and buy, build, and sell real estate (among other things). Second Life has its own economy and a currency called Linden Dollars (L$).

Real Ralph

2006: Real Estate and Mortgage Fraud in Review

Ralph Roberts — Fri, 29 Dec 2006 15:08:48 +0000

After considering the developments of the past year, I am admittedly concerned about the real estate and mortgage fraud outlook for 2007. Real estate and mortgage fraud is a complicated issue, one that presents a spectrum of societal challenges in the form of costs and consequences.

Real Ralph

FBI Director's Congressional Testimony on All Things, Including Mortgage Fraud

Ralph Roberts — Wed, 27 Dec 2006 15:06:34 +0000

Earlier this month, Robert S. Mueller, III, Director of Federal Bureau of Investigation (FBI) appeared before the United States Senate Judiciary Committee to discuss the progress of what he called the FBI's transformation efforts. From the Director's December 6, 2006 testimony:

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A 2007 Wish List for the Banking Industry

Ralph Roberts — Tue, 26 Dec 2006 15:48:11 +0000

In the real estate business, we tell our clients think of a wish list as criteria for the perfect home. While it's rare to find everything they'd like in the house they finally purchase, sitting down and making a wish list will help them find the house which most closely matches their dream.

Real Ralph

With Foreclosures on the Rise, You Need to Know Your Rights

Ralph Roberts — Wed, 20 Dec 2006 15:45:28 +0000

Yesterday, the National Association of Realtors issued a press release voicing the organization's concern ""'over the rising rate of defaults and foreclosures occurring in many areas around the country."

Real Ralph