Where to Report Mortgage Lending and Foreclosure Fraud?

Question

I know a loan broker and Realtor in California (Bay Area) who is running the "I buy your foreclosure and you rent it back from me, and you can buy it back when you're on your feet" scam. He is also looking for someone to alter bank documents to help him qualify people for loans. I know the second issue is illegal, but can't prove he's defrauding people on the first. I have a "Dear Homeowner I can help you" letter from him. Do not want to testify because of safety concerns for my family. Who I can I or should I report this to in confidence, or will anyone care? Thanks in advance for any solid advice.

Answer 1

Go straight to your California Department of Real Estate. They take matters like this seriously and will investigate it. There are laws that all Real Estate Agents and Brokers must follow. Break them and you can get fined or lose your license. And if he or she is also a Realtor they can lose that status too by going to the Realtor Board after you turn them in to the Dept of Real Estate.

Plus find out if this person is a Real Estate Agent or Broker. If he is an agent then he must work for a Broker. The Broker is the boss and is responsible for him. The Broker can not afford to mess around because his license can be on the line too. Most people do not know that there are many agents out there and they all must work under and for a Broker who owns the office. The Broker is highly qualified as they have many courses and a special brokers license they must pass in addition to the agents license and time in the field. They also have ongoing education.

When you report to the Department of Real Estate ask them if you must have your name out or can it be kept confidential. You need to get them turned in ASAP. Fraudulous Agents can hurt many people before they get caught. And the only way they can get caught is if someone turns them in.
I will bet that this person also owes money to IRS. That is very common. Call IRS and tell them you know a fraudulent Mortgage broker and Agent that may be cheating IRS. Believe me they will look into it and your name will not be given. IRS is looking for ways to get these cons. This scam he is pulling is not only to defraud you but also the IRS. Turn him in. And please dont wait.

Answer 2

The first part is not illegal and I do the same thing. First off, if you're purchasing a property with equity that is in default, you must purchase it with a specific purchase offer which gives the homeowner 5 days to back away from the contract. Second, if you rent/lease the home back to the owner, you are now considered a lender and you must have a broker's license and be bonded for 5 or 6 (or whatever number, I forget) the amount of the purchase price. California has very specific laws about purchasing pre-foreclosures and renting them back to the owner.

Altering documents to comit lender fraud is a serious offense. I hope you have proof of this claim. If so, the department of real estate will love to hear from you.

www.dre.ca.gov

Regards

Answer 3

Inform the office of California's attorney general and the California department of real estate. Fraud from a few bad apples makes everyone else working in these types of businesses, honestly and ethically, look bad. The bad apples need to be reported and these agencies exist for this purpose (even if done anonymously)!

Answer 4

Go directly to the state's real estate board, they handle those matters with certain scrutiny, as licensed practitioners are held to a higher standard. Not only do they bring criminal charges but would be the first to remove the license.

Answer 5

I believe the best advise has been given. You can also contact the local FBI agencies Consumer fraud division too. Great job on being one of the good guys

Answer 6

hud.gov