New York Mayor Michael Bloomberg and district attorneys have created two new programs developed by the Financial Crime Task Force to stop mortgage fraud transactions from taking place in the five boroughs.
“One of the repercussions of the housing crisis has been an increase in the number of mortgage frauds and illegal real estate transactions that victimize both lenders and homeowners,” Bloomberg said.
According to the Treasury Department, the New York area is among the hardest-hit regions in the country for mortgage and real estate fraud.
The first program consists of a computer program that will look at existing city data to find “digital fingerprints” that might lead to potential mortgage fraud cases. Strong indicators of fraud include homes or properties that have changed owners multiple times in a short period of time at varying sale prices, transfers of title that are below the market price and the selling of properties below the mandatory tax filings.
District attorneys and law enforcement agencies will investigate the fraud cases found by the computer program.
“The mayor’s office can give law enforcement strong leads on mortgage fraud cases faster than ever before,” said John Feinblatt, the mayor’s chief policy advisor. “This will protect our residents and banks from the loss of property and destruction of credit that accompanies mortgage schemes.”
The second program allows homeowners to sign up and receive notifications when transactions involving their property are recorded by the city. Property owners can receive an e-mail, text message, or letter by mail, any time certain property-related documents are filed with the city.
Homeowners can register by visiting nyc.gov or calling 311.
“The city is taking a two-pronged approach in attacking mortgage and deed fraud—detecting it early and investigating it and giving homeowners a fighting chance in stopping fraudsters in the act,” said Gill Hearn, DOI commissioner. “DOI will continue its work with these city and law enforcement agencies to expose and stop this type of fraud.”
Manhattan district attorney Cyrus Vance Jr. said his office is working hard to identify criminal trends and prevent crime in New York.
“By partnering with the Mayor’s Financial Crime Task Force we have enhanced our abilities to target and prosecute mortgage fraud,” Vance said. “Mortgages all over the tri-state area are funded by banks in Manhattan, and mortgage fraud has a tremendous impact on our residents, our communities and our financial institutions.”
