Industry News

FBI: Real estate loan fraud a ‘crisis in the making’

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SAN FRANCISCO -- Agents, appraisers, and law enforcement agents must work together to combat the rising tide of mortgage fraud in the U.S., a Federal Bureau of Investigations official said in a presentation at the National Association of Realtors convention in San Francisco today. "Mortgage fraud is a crisis in the making," said James "Chip" Burrus, deputy assistant director of criminal investigations for the FBI. He likened the wave of real estate loan fraud sweeping the country to the savings and loan crisis of the 1970s and 1980s that left failed companies and bankruptcies in its wake. Burrus addressed a group mostly composed of appraisers and Realtors at a mortgage fraud presentation on the first day of the NAR convention and trade show, which runs through Monday. About 25,000 Realtors and other industry professionals are expected to attend. "It's important that we get together for a solution," Burrus said. "After the savings and loan crisis, the government imposed a solution on ...