Mortgage Fraud Rising?

Seems impossible doesn't it? But, fraud indexes show fraudulent mortgage activity in the first quarter of 2009 has doubled in the first quarter of 2009. And you thought the government was helping borrowers!

Indictments are up, the numbers of borrowers qualifying for mortgages are down, and the only person with a reputation worse than the mortgage industry is the Craigslist Killer! The bailouts are keeping rates low, but what good are low rates if borrowers cannot qualify. The new HVCC guidelines will make it even more complicated for current homeowners to refinace a home. And nothing seems to be changing!

Perhaps I am missing something. The regulations are in place, but there is so much focus on the regulations that we are forgetting about what really matters -- making it possible for borrowers to refinance and buy homes so we can get out of this economic disaster! Instead, we divert resources towards useless efforts such as the bank stress tests. Just a few days ago, Yahoo! posted an article indicating 3 of the 19 banks failed the stress test (article no longer available). Yesterday, Yahoo! reports that 10 of the 19 banks need to raise more capital. I do not want to know how many millions of taxpayer dollars were wasted, but I can sum up the results for free: Banks were not prepared for the current economic disaster. In case you were curious, the reports for the stress test are due for release tomorrow.

If fraud is up and it is becoming more difficult to qualify for a mortgage, are any of the governments actions working? You be the judge. Now would be the time when I would make a guiltless plug referencing how you need someone you trust in the industry! But I'll spare you!

Sorry for the rant, but I needed to get it off my chest and I know many readers will agree!

Make it a great day!