Mortgage loan fraud can be divided into two broad categories: Fraud for property and fraud for profit. Fraud for property is generally undertaken by borrowers against lenders, while fraud for profit is typically undertaken by lenders against borrowers. The collapse of America’s housing market and the subsequent “pulling back of the veil” behind dubious lending practices clearly showed that the lender-style of fraud, fraud for profit, is well-ahead of the borrower-style in frequency and complexity.
It says it will help homeowners who currently are in peril of losing their homes, but what about those who have already lost their homes this year? Will this bill help them to obtain a loan to buy another home? Or are they just out of luck due to timing?
Oh, but let’s go all out to help Fannie Mae and Freddie Mac, right? What a joke…
