Mortgage Fraud Scams Costs Millions of Dollars Each Year

April 17, 2005 | Times Argus |
"It's a shameful sign of our times," said David Callahan, research director at the public policy group Demos in New York, and Tim Doyle, director in government affairs for the Mortgage Bankers Association. "This is just another area in American life where a boom, with all its money to be made, brought out the worst in us," Callahan said. "The carrots for cheating are getting bigger and even though the sticks are hitting harder, our watchdogs are asleep so it's easy to get away with things."
 
Demos issued a report warning that conflicts of interest pervade the home loan trade, where inflated property values have delivered handsome benefits to lenders and realty agents, leaving homeowners to discover their dearth of equity.