FBI Agent: Most Mortgage Fraud in Apps Process

Most mortgage fraud occurs during the application process, an FBI agent told attendees Sept. 6 at the New York Association of Mortgage Brokers' annual convention in Melville, N.Y.Therefore, "we need all of you to assist us" in combating the problem, Special Agent Charles F. Butruch said, because it is the mortgage broker who sees it first. Carolyn Mitchell, the president of Magnet Portfolio, added that mortgage brokers need to take a more aggressive approach to quality control in their own business. As the market changes, she said, participants need to be more vigilant and more aware of what fraud schemes are out there. Richard Harrison, an attorney with Westerman, Ball, Ederer, Miller & Sharfstein, warned that a huge push looking at appraisers, mortgage brokers, and fraud is likely to be coming soon from New York State Attorney General Andrew M. Cuomo. The New York Association of Mortgage Brokers can be found on the Web at http://www.nyamb.org.