Re: Barack Obama's STOP FRAUD Act - Ouch
Mack I couldn't agree more...
The Industry needs stricter policing no doubt and we have to start somewhere but this could have a major impact once the lawsuits start flying. We think the industry is full of legal issues now. If this passes and it appears to be gaining real support this time watch out.
Here is what I'm seeing is behind this All told, the STOP FRAUD Act authorizes Sixty-five Million dollars ($65,000,000) to combat mortgage fraud, and while anyone who knows me would tell that I’d be the first to go on record as saying that $65 million isn’t nearly enough (especially when you consider that just fifteen percent [15%] of that money is going towards education.
In plain English… if you commit mortgage fraud, you’ll face 35-years in prison and/or a $5,000,000 fine!
And in case you’re wondering, the STOP FRAUD Act defines “mortgage professionals” as:
- Real estate appraisers
- Real estate accountants
- Real estate attorneys
- Real estate brokers
- Mortgage brokers
- Mortgage underwriters
- Mortgage processors
- Mortgage settlement companies
- Mortgage title companies
- Mortgage loan originators
- Any other providers of professional services engaged in the mortgage process
Stay tuned for more on information on Bill S. 2280 [109th]: STOP FRAUD Act as it appears the water is starting to rise around our country!
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