They don't say what the crooks are doing, other than that it's "fraud." What the heck are they talking about?
Atlanta is the worst!
Fake appraisals, fake tax returns, fake customers.
The mortgage brokers are either setting up bad paper
or lenders are selling fake loans to other lenders!
Some loans for homes are backed by US government...Fannie Mae Mortgages, VA mortages, Farm Home Mortgages, etc.
What is happening is the homes being mortgaged aren't worth what they are loaning, or loans are being given to people who really can't afford to pay them back, income ratio to debt or too much debt already, based on both incomes,etc. The Mortgage Broker is charging heavy fees, upwards of $4-5000 dollars at closing. That is the fraud...these mortgages will not be paid back, and these houses won't sell for amt borrowed...leaving government holding the bag and the taxpayers money lost for the guarantee on the mortgage.
A 100 of those lousy loans nets the Fraudelant Mortgage Broker almost $400,000-$500,000 dollars for his selling them the loan. Legitimate brokers are afraid to deny these loans as many are minorities,elderly or very young females...so they risk discrimination suits. So both greedy fraud brokers and legitimate mortgage brokers are breaking the taxpayers.
I don't claim to know a lot about it, but this is fairly close to what is happening as it was explained to me.