While information about mortgage fraud seems to be everywhere it can still seem unclear as to what exactly mortgage fraud is.The mortgage industry divides mortgage fraud into two categories: fraud for housing and fraud for profit. What can you the consumer do to protect yourself from falling victim to mortgage fraud? What can banks and mortgage lenders do to protect themselves from falling victim to mortgage fraud? Learn more here about mortgage fraud and how to protect yourself.
Lenders who charge excessive fees. Lenders who tell you your loan application won't be approved if you don't buy high-priced credit insurance. Lenders who tell you your credit isn't good when it is. These are some of the characteristics of predatory lenders -- bad apple lenders who prey on unsuspecting or unsophisticated borrowers.
Some home owners had trouble making mortgage payments after 9-11. Experts from the Mortgage Bankers Association put their delinquency rates into perspective. Learn also how mortgage lenders and secondary market players such as Freddie Mac work to combat mortgage fraud.
In the late 1990s, the National Training and Information Center released lists of the worst mortgage lenders in the country, as indicated by their loan default rates. The worst mortgage lenders had the highest rates of foreclosure. A list of Chicago mortgage lenders is included.