Obama calls for action against fraud
Sunday, June 11, 2006
Printable FormatCHICAGO TRIBUNE
To help shine the spotlight on con artists, the Mortgage Bankers Association and other industry trade groups are backing legislation by Sen. Barack Obama (D-Ill.) that would criminalize mortgage fraud at the federal level.
The "STOP FRAUD Act" would expand the suspicious activity reports requirement, establish a database of censured and debarred mortgage professionals and provide funding for enforcement activities.
The trade group also has asked the House and Senate Appropriations Committees to give the FBI $6.25 million a year for five years in dedicating funding to assist in the agency's efforts in tracking down and prosecuting mortgage fraud.
The money would provide for new field investigators, prosecutors and support staff in areas with the highest concentrations of mortgage fraud.
Mortgage fraud "is one of our top priorities," says John Robbins, a San Diego lender in line to become MBA chair in October.
"If we don't find ways to combat this as a team, it will continue to grow," he says. "We have to make sure the American dream doesn't turn into the American disaster."