A recent U.S. Treasury report shows an increasing number of lawsuits surrounding mortgage-backed security. The study also found that when lawsuits are not filed investors are making other demands to recover their investments.
According to the department’s Financial Crimes Enforcement Network 29,558 tips regarding mortgage fraud were reported from April-to-June 2011, that number is 88% higher than the 15,727 reported cases in Q2 2010.
The study revealed that a large number of tips during the second quarter involved mortgages that closed during the height of the real estate bubble.
According to the agency tips often involve cases of fake documentation that followed debt-elimination scams. In many cases the fraudulent use of Social Security numbers lead to different types of “suspicious activity.”
Lawsuits stemming from the fraud extended all the way to the top ranks of the U.S. Government and include 17 cases filed on September 2 against the world’s biggest banks .
According to records:
Bank of America Corp., JPMorgan Chase & Co., Goldman Sachs Group Inc., Citigroup Inc., Morgan Stanley, Ally Financial Inc., formerly known GMAC LLC, Deutsche Bank AG, First Horizon National Corp., General Electric Co., HSBC North America Holdings Inc., Nomura Holding America Inc., and Societe Generale were all accused of selling mortgage-backed securities to Fannie Mae and Freddie Mac based on faulty documents.
Have you been the victim of mortgage backed fraud? Let us know what you did to deal with the situation?
