Mortgage fraud has never been more prolific than it is today. According to a report issued in March by the Mortgage Asset Research Institute (MARI) and the Mortgage Bankers Association, is at its highest percentage ever, with Colorado being ranked in the top 10 of the MARI Fraud Index. (http://www.marisolutions.com/pdfs/mba/mortgage-fraud-report-11th.pdf). The Federal Bureau of Investigation (FBI) has also noted a substantial increase in the number of mortgage fraud cases. According to Attorney General Eric Holder, the FBI is currently investigating over 2,000 cases, which is 400% more than just five years ago.

The federal government is now offering a program that grants $75 billion in order to aid mortgage holders in securing refinanced loans. This could greatly impact the more than 9 million homeowners who are currently experiencing financial difficulties and might otherwise face foreclosure.

As part of this effort to provide help to those who may lose their homes, several agencies are also working together to fight mortgage rescue and foreclosure scams. These departments include the Department of Housing and Urban Development (HUD), the Department of Justice, and the Federal Trade Commission (FTC). The FTC has concentrated its efforts the malicious advertising practices of mortgage foreclosure companies. Thus far, the FTC has isolated over 70 suspicious companies and has filed five civil cases against these businesses. The FTC has found that many of these mortgage companies make promises they cannot keep and charge fees for services that are available for free elsewhere, if the troubled homeowner knows where to look.

Also included with the agencies fighting mortgage and foreclosure fraud are state attorneys general and the financial crimes investigative unit of the Treasury. The Treasury has compiled a checklist for financial institutions that must be completed. By communicating with these financial institutions, the Treasury can more easily find any activity that is deemed to be suspicious. This could include irregular loans or any type of foreclosure rescues that are not completely above board.

The hope of the federal government is that, combined with the moneys set aside to aid homeowners as well as the coalition of government agencies banding against fraudulent companies, there will be fewer persons facing losing their homes and far fewer individuals suffering at the hands of companies with deceptive practices.