FAQs
What is mortgage fraud?
Mortgage fraud is a scheme with the intent to obtain mortgage loan proceeds using deliberate misstatements(s), misrepresentation(s), or omission(s) which are relied upon by a mortgage lender, borrower, or any other party to the mortgage lending process. In "plain language," mortgage
fraud is a scheme to obtain a loan the lender would not have made if it had
known the truth.
Mortgage fraud is a crime under both Georgia and federal laws. Other states are enacting statutes which make mortgage fraud a specific crime in their states.
How do I report suspected mortgage fraud?
You should prepare a summary report of facts, names, and important information with supporting documents to provide to law enforcement and authorities. The Georgia Residential Mortgage Fraud Statute empowers all citizens (not just lenders) to file SARS (Suspicious Activity Reports) and criminal complaints of mortgage fraud.
You should prepare a written statement describing the mortgage fraud. This statement should include as much information as you have, including a description of the fraud, the names and any contact information for those involved, and the amount of your loss. Attach copies of any related documents you may have, including the promissory note and deed to secure debt (mortgage), the HUD-1, the appraisal, any newer appraisal, the listing agreement, etc. and other relevant documents.
What is the difference between legal and illegal flipping?
"Flipping" can be legal if all parties to the transaction are fully aware of all the details of both transactions. There can be no undisclosed information. You cannot use the funds from one transaction to fund the next deal at the table. The second transaction should be supported with an appraisal that shows all of the renovations being done or supporting reasons for an increased value from one deal to the next. There should be no third party payouts or sales concessions without everyone's knowledge. Normally, several months elapse before the second transaction closes to allow time for renovations.
Where do I report suspected mortgage fraud?
Report to State and/or Federal Law Enforcement:
DO NOT report suspected mortgage fraud
to GREFPAC. GREFPAC neither does investigation nor gives legal advice or opinions.
Since the Georgia Residential Mortgage Fraud Statute was enacted in 2005, law enforcement authorities at the county and state levels all have jurisdiction to investigate mortgage fraud.
At a city/county level, you may report mortgage fraud to county investigators (police, sheriff’s office, district attorney offices) in the county where the residential property involved is located, the county in which the closing occurred, or the county in which fraudulent documents were filed.
Where you report, depends upon your particular city or county. You should start by contacting the detective unit for white collar crime/mortgage fraud in the appropriate county or city police department. The police department will direct you from there.
At a state level, you should report to:
Fraud Hotline
800-437-2838
United States Attorney’s Office,
Northern District of Georgia
Gale McKenzie, Asst US Attorney
Gale.Mckenzie@usdoj.gov
404-581-6000
Department of Banking and Finance
www.ganet.org/dbf/dbf.html
www.gadbf.org/preventmortgage_fraud.htm
Broker and Lenders
770-986-5036
Director of Mortgage Supervisions, DBF
Sandra Sheley
sheley@dbf.state.ga.us
770-986-5036
Deputy Commissioner for Mortgage, DBF
Rod Carnes
rodc@dbf.state.ga.us
770-986-1371
Georgia Real Estate Commission
Real Estate Appraiser’s Board
www.grec.state.ga.us
404–656-3916
Gwinnett County Police Crime Prevention Unit
Officer Kevin Moller
770-822-8425
State Bar of Georgia, Office of General Counsel
404-527-8700
Gwinnett County District Attorney
Danny Porter
770-822-8425
Asst. D.A., George Hutchinson (white collar)
770-822-8466
Senior Assistant Attorney General David McLaughlin
(404) 656-3300
dmclaughlin@law.ga.gov
FBI
Special Agent David C. Riser
Supervisor, White Collar Crimes Unit
404-679-9000 (24 hour complaint line)
mfwg@hotmail.com
If there is an urgency, such as an impending closing, tell the person taking
the call the nature of the urgency and ask them to notify David Riser immediately.
Otherwise, report to the number above or email to mfwg@hotmail.com, the specially
set email address for the FBI mortgage fraud working group.
Assistant U.S. Attorney, Gale McKenzie
U.S. Attorney office, Northern District of Georgia
404-581-6045
gale.mckenzie@usdoj.gov
Report to Regulatory Agencies:
To report a mortgage broker, mortgage banker, or state chartered bank or credit union:
Georgia Department of Banking and Finance
770-986-1633
www.gadbf.org (This site is where you would report fraud.)
To report a federally chartered bank:
Office of the Comptroller of the Currency (OCC)
202-874-5000
www.occ.treas.gov
To report a federal savings bank:
Office of Thrift Supervision
202-906-6000
www.ots.treas.gov
To report an attorney:
Office of General Counsel
State Bar of Georgia
404-527-8700
To report a real estate agent or broker (REALTOR):
Georgia Real Estate Commission
404-656-6642
To report an appraiser:
Board of Appraisers
Georgia Real Estate Commission
404-656-3916
www.greab.state.ga.us
Also report to:
Fannie Mae
800-732-6643
www.efanniemae.com (Click "reporting
mortgage fraud" in lower right corner.)
Federal Home Loan Mortgage Corporation (FHLMC), commonly known as
Freddie Mac
Fraud Hotline: 800-437-2838
www.freddiemac.com
Do Not Report to GREFPAC.
Should we send GREFPAC information or files to look at for us?
No. GREFPAC is an educational organization. GREFPAC neither does investigation nor gives legal advice or opinions.
Who is your media contact?
Therese G. Franzén, Esq.
Franzén and Salzano, PC
40 Technology Parkway South
Suite 202
Norcross, Georgia 30092-2906
tfranzen@franzen-salzano.com
770.248.2882
Who do I contact to have a GREFPAC member speak to my community about mortgage fraud?
Please e-mail us the date, time, place, your event, your organization, and your contact information. We will be in touch.
You can contact us at www.info@GREFPAC.org.
