2007 Mortgage Fraud Report from the FBI.

[randomness]

From http://www.fbi.gov/publications/fraud/mortgage_fraud07.htm:



'The above photos are from condos that were involved in a mortgage fraud. The appraisal described “recently renovated condominiums” to include Brazilian hardwood, granite countertops, and a value of $275,000.'

According to Tanta at http://calculatedrisk.blogspot.com/2008/05/fbi-2007-mortgage-fraud-report.html:

Back when Tanta was young and dinosaurs ruled the earth, if you wanted to refi based on "as improved" value of the property, you coughed up contractor invoices, materials receipts, etc., and you let the appraiser in to photograph all the claimed "improvements." It was, of course, a big "hassle." And we're so committed to fantastic customer service that we of course eliminated such unnecessary "hassle."

It does make you wonder whether some of these reports of pre-foreclosure "trash outs" don't involve a few properties that were trashed from the get-go.

Thanks to http://calculatedrisk.blogspot.com/ for the pointer.

Comments

[mmancuso.livejournal.com]

I think I can see a little chunk of what might be hardwood in the left picture. The DNAScan feature of my version of PhotoShop detects nothing Brazilian in the picture. However, one of the glass bricks in the window once had a sticker from a Chilean fruit.

[signsoflife.livejournal.com]

The current "This American Life" (I think they're available free only in the first week) is about the sub-prime crisis. Some neat stuff about no-income no-assest loans.

[belfrynotes.livejournal.com]

I didn't hear that, but heard the ATC part of the crossover show and found the bit about the international money supply fascinating. Basically, in the space of a few years the amount of money in the world doubled, which meant that people had to invent new places for it to be invested. And one of the major inventions was the mortgage-backed security.

[r-ness.livejournal.com]

Yes, it's a great piece. I played it for bedfull_o_books last night.

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