UTAH LOAN FRAUD - Part 4

This is Part 4 of a 4 Part article I recently wrote concerning Mortgage Fraud in Utah.

If you would like an emailed copy of the entire article, contact me by email at jayhart@cottonwoodmtg.com or comment on this post.

The unfortunate reality is that while most loan officers and borrowers have good intentions, the financial benefits associated with fraudulent loans continue to encourage illegal and unethical behavior. Mortgage Fraud leads to artificially inflated home values and unnecessarily high rates of default. Such factors then lead to a slowing of the economy and ultimately and increase in interest rates, thus perpetuating the apparent “need” to falsify loan documents.

However, while there is a great deal remaining to be accomplished in efforts towards the eradication of Mortgage Fraud in Utah, it is important to note the progress that has been made. The Utah Association of Mortgage Brokers, in conjunction with the Division of Real Estate should be recognized for the efforts of recent years; The countless loan officers who have been willing to sacrifice potential income in efforts to maintain personal and professional integrity; the many home owners and buyers who have recognized mistaken and misrepresented information and refused to continue a transaction. These individuals and organizations should be commended, but such recognition should not be viewed as acceptance of current trends and practices that lead to illegal behavior.

Mortgage Fraud in Utah is a major problem, as it is throughout the nation. This problem is seen through multiple practices and is having a negative impact on our economy, particularly the housing industry. As Fraud persists, it is important to recognize the involvement of the various parties of a transaction, rather than identifying one group of persons as the scapegoat for a larger systemic problem. If our economy requires the elimination of Mortgage Fraud, then much effort needs to be increased. Only though proper education and understanding can we prevent Mortgage Fraud in Utah.