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Combating Mortgage Fraud  New DFI Complaint Form to Assist in Filing Complaints
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Front Page Articles

  Combating Mortgage Fraud 

New DFI Complaint Form to Assist in Filing Complaints

by Rick Staff

The Wisconsin REALTORS® Association and the Wisconsin Department of Financial Institutions (DFI) have teamed up to provide brokers and consumers with an online complaint form to use in real estate transactions in which there are allegations that a loan originator has committed mortgage fraud.

Mortgage fraud occurs anytime a participant in a real estate transaction misrepresents facts with the intent to bilk another party of money it is not entitled to. Fraud may occur when there are two sets of offers drafted, one representing the "real deal" the other the fraudulent transaction. Fraud can also occur when the parties have inflated the sales price by using a "forgivable" second mortgage of phony work orders. Because mortgage fraud is costing all Americans in higher taxes and mortgage costs, the regulators, brokerage community and lender groups are uniting to protect consumers and insure honesty in all real estate transactions in Wisconsin.

Mortgage fraud can be committed by any of the participants in a real estate or mortgage transaction. Among the individuals who have been named in criminal indictments are sellers, buyers, real estate brokers and salespersons, mortgage brokers, mortgage bankers, appraisers, and loan originators. While Wisconsin law already outlaws such mortgage deceptions, DFI has developed an additional tool to combat illegal mortgage activity. DFI's new complaint form, as well as guidelines for completing the form, can be found online at www.wdfi.org/fi/mortbank/mbapp.htm. DFI's Mortgage Banking Section can be reached in Madison by telephone at 608-261-7578. A variety of additional state and federal resources are available to stop mortgage fraud. Contact information for complaints regarding other parties to fraud include:

Licensed and Certified Real Estate Appraisers, Real Estate Brokers and Salespersons

• Department of Regulation and Licensing Phone: (608) 266-7482. www.drl.wi.gov/dept/complaintfm.htm

Real Estate Brokers, Salespersons and Appraisers

• Department of Regulation and Licensing - Phone: (608) 266-7482 www.drl.wi.gov/dept/complaintfm.htm
• Wisconsin REALTORS® Association (ethics complaints are filed with local associations) Phone: (608) 241-2047 www.wra.org/Resources/association_links.htm

Mortgage Bankers, Mortgage Brokers and Loan Originators

• Department of Financial Institutions Phone: 608-261-7578. www.wdfi.org/fi/mortbank/
• Wisconsin Mortgage Bankers Association Phone: 608-255-4180 http://www.wimba.org/
• Wisconsin Association of Mortgage Brokers Phone: 608-259-9262. info@wambrokers.com 

Sellers and Buyers And Any Other Person Engaged In Mortgage Fraud

• U.S. Department of Justice, U.S. Attorney's Office and FBI (operating a mortgage Fraud Task Force out of Milwaukee) Phone: 414-276-4684

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