By Jim Tankersley
Rep. Judy Biggert (R-Ill.) pushed a measure through the House today that would add $6.25 million to the federal government’s fight against mortgage fraud.
Inspired in part by a Tribune investigation of urban mortgage scams – read the first story in the series here – Biggert’s amendment to an appropriations bill would beef up FBI and U.S. attorney anti-fraud efforts.
"We must take action if we are going to tackle the fraud that is at the root of many of our subprime or 'predatory' loan problems," the suburban Chicago congresswoman said in a press release.
Here's the full release from Biggert's office:
Biggert Anti-Mortgage Fraud Amendment Passes in House Bill
Washington, DC - The U.S. House of Representatives approved an amendment today that gives the FBI and U.S. Attorneys' office additional resources to fight mortgage fraud. Offered by U.S. Rep. Judy Biggert (R- IL-13th), the amendment passed the House by voice vote, and was included in H.R. 3093, the Fiscal Year 2008 (FY08) Commerce, Justice, and Science Appropriations Act.
Following debate on other amendments, the bill is expected to pass the House and be referred to the Senate for consideration.
The amendment redirects $6.25 million to anti-mortgage fraud efforts in FY08 -- $750,000 to the U.S. Attorneys' office and $5.5 million to the FBI. The funding would provide for additional personnel and enable the FBI to enhance its interagency task force operations against mortgage fraud.
"Mortgage fraud is occurring across the country, affecting homeowners of all walks of life - from first time homebuyers to our seniors," said Biggert, Ranking Member of the House Financial Services Subcommittee on Housing and Community Opportunity. "In the worst cases of mortgage fraud, homeowners can lose their homes to foreclosure."
According to the Mortgage Asset Research Institute, Illinois had the seventh highest rate of mortgage fraud last year. Though determining the financial damage that mortgage fraud has caused is hard to quantify, the FBI estimates the losses in 2006 to be between $946 million and $4.2 billion.
"Recently, the Chicago Tribune reported that gangs in Chicagoland and mortgage fraud rings across the country are scamming homeowners - and often seniors - and leading them down the road to foreclosure," said Biggert. "We must take action if we are going to tackle the fraud that is at the root of many of our subprime or 'predatory' loan problems."
The amendment was modeled after a bill Biggert introduced earlier this month, H.R. 3017, the Stop Mortgage Fraud Act. According to Biggert, putting a stop to mortgage fraud is just one fight in an ongoing
Congressional effort to address the recent spike in home foreclosures.
Yesterday, the House passed a related amendment offered by Biggert, along with U.S. Reps. Turner (R-3-OH) and Gillmor (R-5-OH), which increased funding for federal homeownership counseling services.
• 
• 
• 
Comments
Thank God a Repub. has finally seen the light.
Not all regulation is bad.
America needs protection from these legal loan sharks, and GWB has aided and abetted them in spades.
GWB, the Tony Soprano of conservative politics.
Posted by: C.Morris | July 26, 2007 8:15 PM
C Morris, yes, in addition to conspiring with the oil companies, Bush conspired with the mortgage companies and forced people to buy homes they couldn't afford. I guess you're also in a snit today cause the police burned up so much pot yesterday.
Posted by: John D | July 26, 2007 11:54 PM
There are a few items I call "credit report killers" that people should be aware of that can adversly affect their credit report and credit scores.
There really isn't too much room here to explain in detail but I have actually made a video about the top 10 credit report killers. This video was made form the .pdf version which I wrote.
In this video I answer the most common questions I get about information that appears on credit reports.
Specifically I cover information on Charge-offs, Collection Accounts, Judgments, Inquiries, Bankruptcies, Delinquencies,and more...
In the video Your clients will learn what each of these items are and how they can affect their credit report, as well as how long each item can remain on your credit report.
The video is very informative and is solid content for your readers and clients.
The Video is Free to Watch Here
The .pdf version you can downloaded here Free
Sincerely
Credit Expert Frank Bruno
http://www.DisputeDemon.com
Posted by: Frank Bruno | July 27, 2007 9:34 AM
John D,
Lax oversight by federal regulators have made the problem worse.
It doesn't just affect the fools that sign up for the loans, John; It affects the stock market, which affects you, me, nearly everyone.
Echos of the S&L scandal.
I will cede to you that the problem is bipartisan.
Posted by: C.Morris | July 27, 2007 5:05 PM