How to report mortgage fraud to a financial institution

Mortgage fraud is a growing concern. Various fraudulent acts are classified as mortgage fraud, and a borrower, real estate agent or lender can be found guilty of committing it. Mortgage fraud is the intent to omit or mislead a party to facilitate a sale. If you come across someone guilty of mortgage fraud, take action to report the activity to the proper authorities. In addition to contacting the financial institution, alert several other agencies that will make sure justice is served.

Gather your evidence. Regardless of who is guilty of committing mortgage fraud, you will need to supply proof. Mortgage documents and any other signed agreements are helpful as evidence.

Identify the predator. If you are a victim of mortgage fraud, provide as much contact information as possible pertaining to the person or business committing the fraud. If you are reporting a homeowner or loan applicant guilty of mortgage fraud, you will need the person's name and property address.

Call the financial institution related to the incident. Request information on how to report fraudulent acts. In most cases, a specific department is responsible for handling fraud reports. Send all documents by certified mail to ensure they are received. If you need help getting contact information for a particular lender, visit the Making Home Affordable website for a list of financial institutions (see Resources).

Report the matter to the Federal Trade Commission (FTC). If you have a complaint, the FTC can determine if you are a victim of mortgage fraud and can direct you to the appropriate law enforcement agency to take further action. Call 877-382-4357.

Visit your state attorney general's website. The office of the attorney general strives to protect the state's citizens and provides legal representation for the state and various agencies. You are encouraged to report mortgage fraud to the office.

Notify the Better Business Bureau (BBB). The BBB is a system of more than 120 local, independent bureaus that aim to resolve complaints and inform the public about unjust business activities. Contact your local BBB to report mortgage fraud.

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About the Author

Jeannine Mancini, a Florida native, has been writing business and personal finance articles since 2003. Her articles have been published in the Florida Today and Orlando Sentinel. She earned a Bachelor of Science in Interdisciplinary Studies from the University of Central Florida.

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