NV: High Mortgage Fraud Rates
There are increasing instances of alleged mortgage fraud being reported across the nation. No state is immune. The Mortgage Asset Research Institute (MARI) now ranks Nevada 7th when it comes to alleged mortgage fraud and material misrepresentation. Additionally, the FBI has reported that federally-regulated institutions reported more than $1 billion dollars in losses because of mortgage fraud in fiscal year 2005.
One of the latest problems in mortgage fraud complaints are problems with appraisals and valuations. Many people are finding themselves trapped in upside-down loans where the value of the mortgage is exceeding the value of the house. There have been numerous reported cases of appraisers being pressured by lenders to “come in” at a predetermined number, or risk being black-listed or by withholding payment.
Some within the industry are pushing for change to combat rising fraud. For instance, the Center for Responsible Appraisals and Valuations is encouraging lenders, appraisers, realtors and others in the housing industry to sign a “Code of Conduct” to ensure homebuyers and homeowners receive accurate and fair appraisals for their Homes.
For more information, contact MillionSaverHomes.com a local Las Vegas real estate broker at 702.212.3513
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