Title

Mortgage fraud: Schemes, red flags, and responses.

Document Type

Article

Publication Date

2014

Date Issued

2014-01-01

Date Available

2016-12-15

ISSN

2165-3755

Abstract

Mortgage fraud has been on the rise in recent years. Mortgage fraudsters reap illicit gains by engaging in diverse fraud schemes. These frauds include foreclosure rescue, home equity conversion, loan modification, illegal property flipping, builder bailouts, equity skimming, straw buyers, and short sale schemes. We review unique red flags for each scheme. We then document how and why the rise in mortgage fraud has not been accompanied by a concomitant increase in federal and state prosecution. While the federal government has reinstated tougher mortgage underwriting standards and instituted a license registration system for mortgage brokers, additional actions can be taken to combat mortgage fraud. We recommend a series of additional steps that could be taken by the public and private sectors to enhance the attack on mortgage fraud. Forensic accountants would play an important role in the implementation of the additional anti-mortgage fraud steps.

Comments

Abstract only. Published in Journal of Forensic & Investigative Accounting 6(2), 225-259. Full-text article may be available through the link provided.

Language

en_US

Publisher

Louisiana State University, EJ Ourso College of Business Administration, National Association

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.