FBI Reports Spike in Reverse Mortgage Fraud

Posted by Charles D

September 25, 2009

federal-bureau-of-investigation The United States Federal Bureau of Investigation recently reported that several agencies around the country have been actively working to defraud the equity of senior citizens via a reverse mortgage.

FBI and Department of Housing and Urban Development-Office of Inspector General (HUD-OIG) reporting indicate that u nscrupulous l oan officers, mortgage companies, investors, loan counselors, appraisers, builders, developers, and real estate agents are exploiting Home Equity Conversion Mortgages (HECMs)—also known as reverse mortgages—to defraud senior citizens. They recruit seniors through local churches, investment seminars, and television, radio, billboard, and mailer advertisements, and commit the fraud primarily through equity theft, foreclosure rescue, and investment schemes.¹ HECM-related fraud is occurring in every region of the United States, and reverse mortgage schemes have the potential to increase substantially as demand for these products rises in demographically dense senior citizen jurisdictions. More Info