The legal term mortgage fraud is the result of predatory lending practices when dealing with mortgage loans. Mortgage fraud is the intentional violation of lending laws in writing a mortgage. This type of fraud can cost the borrower thousands of dollars in interest, fees, and penalty charges. It includes specific things such as deliberately deleting or changing documents in the mortgage lending package, significantly changing lending terms without explanation, and other violations that are intended to illegally take money from the borrower.
HUD, FHA, and others in the federal government are working hard to prevent mortgage fraud, predatory lending, and to come up with some assistance for those who have been hurt by subprime loans.
The mortgage and banking industry is also trying to clean up its own house. Because mortgage loans are bought and sold in a free market society the problems with subprime loans have made them less lucrative and have caused lending groups to lose money, so subprime loans are being severely limited. The subprime is a very risky investment and has even negatively affected the stock market, so it is an issue that will be addressed by the financial experts.
As for the individuals who have been hurt with this, there is help coming. Many of the government agencies and our congressional representatives have recognized that there are problems. Slowly, funds and other assistance is becoming available. The assistance is also coming from cities that have been hit hard with subprime problems and foreclosures.
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Note: This article was sent to us by: Cal Dresher at 06102010
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