Reporting Mortgage Fraud

Criminal Resources for Reporting Mortgage Fraud:

The FBI is the agency that handles most criminal mortgage fraud investigations.  You can report mortgage fraud to them by calling 202-324-3000 or by using their website at https://tips.fbi.gov.  Other federal agencies also investigate mortgage fraud but the FBI is generally the best place to start.

The U.S. Attorney’s Office in your state may also take a report of mortgage fraud.  They are especially useful if you are a victim in an ongoing case or a case that has already been subject to indictment.  You can find a link to the U.S. Attorney in your state here: https://www.justice.gov/usao/find-your-united-states-attorney

If you are reporting a fraud where an individual or consumer was the victim, the Attorney General in your state may also be a reporting resource.    Often the state Attorney General will bring civil lawsuits against professionals or companies that have harmed a large number of consumers.  For instance, the Attorney General might bring a lawsuit against a company running a foreclosure modification scheme or engaging in illegal debt collection practices.  The National Association of Attorney Generals maintains a website of the current Attorney Generals and has links to the state websites. You can access it here:  http://www.naag.org/naag/attorneys-general/whos-my-ag.php

Your local police agency may also take a report of mortgage or financial fraud if you are the victim.

If the issue involves a loan modification company, the Lawyer’s Committee for Civil Rights Under the Law created a clearinghouse for complaints and reports.  It is located at preventloanscams.org

Reporting on Specific Loans:

HUD:  If the case involves a mortgage that is insured by the Department of Housing and Urban Development (“HUD”), you can make a report directly to HUD’s Office of the Inspector General.  The Office of the Inspector General has a law enforcement arm that conducts criminal investigations.  You can contact them at:

Phone: (800) 347-3735
Fax: (202) 708-4829
Email: hotline@hudoig.gov
Address: HUD OIG Hotline (GFI), 451 7th Street, SW, Washington, DC 20410

Fannie/Freddie:  If the case involves a mortgage that is owned by Fannie Mae or Freddie Mac, you can report the fraud directly to them.  While they do not conduct criminal investigations, they may open an internal investigation and, if they prove fraud, they may make a report to the criminal authorities.  Fannie Mae’s Mortgage Fraud Prevention page can be found here:  https://www.fanniemae.com/singlefamily/mortgage-fraud-prevention.

Freddie Mac’s Mortgage Reporting information is:

Lenders:  While a majority of the residential mortgage loans in the United States are owned by Fannie Mae or Freddie Mac and/or are insured by HUD, some are kept in private portfolios or are in private securities.  You can always contact the lender on the Deed of Trust to report fraud.

 

Resources for reporting professionals to state agencies:

For fraud where a real estate professional was the perpetrator, you can make a report to the agency that licenses and regulates the professionals in your state.  Usually, these agencies only have the ability to bring disciplinary actions against the professional’s license, but they may be able to help with criminal referrals.  Some state also have a recovery fund where some of the license fees paid by professionals are retained to help victims who suffer financial losses.

Real Estate Agents/Brokers: Mortgage Daily has an online resource that has licensing requirements for each state and also has links to each state’s licensing agency.  It can be viewed at http://www.mortgagenewsdaily.com/real_estate_license/

Mortgage Loan Officers/Brokers: Residential mortgage loan brokers must be registered with NMLS, the National Mortgage Licensing System. The NMLS system also posts the licensing requirements for each state and has a link to the state’s regulatory agency. Please note that bank employees are not listed on NMLS and may not be subject to the state’s licensing and regulatory requirements.  You can access the NMLS lists here:  http://mortgage.nationwidelicensingsystem.org/slr/Pages/default.aspx

Appraisers:   Contact information for state agencies can be located here:  http://www.appraisalinstitute.org/education/education-resources/state-appraisal-regulatory-agencies/

Notaries:  Use a search engine to search the name of your state and “notary regulatory agency.”

Attorneys:  Attorneys are subject to strict ethical requirements. A list of state and local bar associations can be found here:  https://www.hg.org/bar-associations-usa.html.  It is probable that you will want to contact the state bar association, not your local bar association.