Mortgage Fraud Expert Rachel Dollar-The MortgageFraud Blog

By Wisniowski, Charles | Mortgage Banking, February 2007 | Go to article overview

Mortgage Fraud Expert Rachel Dollar-The MortgageFraud Blog


Wisniowski, Charles, Mortgage Banking


Rachel Dollar is a California attorney and recognized expert on fraud in the mortgage lending industry. She is the editor of the public-service industry Web site Mortgage Fraud Blog (www.mortgagefraudblog.com), which is committed to raising awareness of the growing problems associated with mortgage fraud against lenders.

Dollar is a partner in the law firm Lanahan & Reilley LLP, Santa Rosa, California, where she chairs the firm's Mortgage Banking Group. She handles mortgage fraud litigation for lenders on a nationwide basis. She has supervised successful complex mortgage fraud and Racketeer Influenced and Corrupt Organizations Act (RICO) litigation in the federal courts, as well as complex litigation involving secondary-market investors, mortgage insurers, loan servicers and other financial services companies. Dollar has also been involved in the discovery, investigation, resolution and litigation of large-scale fraud schemes nationwide.

[ILLUSTRATION OMITTED]

A frequent industry speaker, Dollar also teaches in-house seminars on mortgage fraud issues to lending professionals. She frequently consults with licensing and local, state and national criminal agencies across the country on mortgage fraud matters, and is sought out regularly by the press to comment on mortgage fraud issues and cases.

Mortgage Banking recently interviewed Dollar about the current state of mortgage fraud against lenders.

Q: Let's start by giving a working definition of "mortgage fraud" and explain its impact on the mortgage lending industry--both in terms of dollars and cents, and the way it has changed the way business is done.

A: The definition of mortgage fraud is any misrepresentation made in the loan process in order to influence a lender's decision regarding credit. That causes the lender to extend credit beyond that which they would have otherwise have extended--which could be [in the form of] a higher loan amount or credit on different terms, including lower interest rates.

It's important to include that within the definition of mortgage fraud because it brings in the whole sphere of fraud for property. There are really two different types of mortgage fraud that we're concerned with: one of fraud for profit, which is the larger scheme. That results in really high dollar-amount losses and other ones that the statistics mostly track; versus fraud for property or fraud for housing, which usually only involve one loan to two loans at a time, lower dollar losses and a situation where a borrower is misrepresenting certain information in order to get into a larger house or a lower interest-rate product.

The difference is that in fraud for housing, the borrower intends to make the mortgage payments--while in fraud for profit, the ultimate intent of the parties taking out the loans is to default on the loans and allow them to go into foreclosure.

The impact on the mortgage industry has really changed over the years, as mortgage fraud has become more of a significant issue. Initially, a lot of the fraud was viewed as a cost of doing business. But as fraud has impacted lenders at higher dollar amounts and has involved actual damage to consumers, lenders have taken a different look at it.

There are a lot of lenders now that are using fraud as one of their underwriting criteria. They are looking at fraud issues upfront in the loan process, and [they are] having that be a real focus of underwriting.

As far as dollars go, FBI [Federal Bureau of Investigation] statistics show that there was approximately $1 billion worth of mortgage fraud in 2005. That is estimated to be about one-third of the actual problem, so the losses are actually estimated between $1 billion and $3 billion--and that differential rests in the fact that the FBI measures fraud statistics by suspicious activity reports [SARs], and only one-third of lenders are required to file suspicious activity reports.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Mortgage Fraud Expert Rachel Dollar-The MortgageFraud Blog
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.