ccording to an FBI Report, Threats of Mortgage Fraud are on the rise for Elderly Homeowners
(White Plains, NY) – The Westchester County Departments of Consumer Protection and Senior Programs and Services (DSPS) have joined forces to raise awareness of older homeowners falling victim to mortgage fraud. According to the Federal Bureau of Investigation Office of Private Sector, criminal actors are using forgery, identity theft and online activity to target older homeowners and conceal unlawful activity from their victims, lenders and law enforcement.
According to a recent report, the FBI’s Criminal Investigative Division (CID) in coordination with the FBI’s Office of Private Sector (OPS), concluded that there was an increasing threat of mortgage fraud targeting the elderly homeowner equity. In response, the two County Departments are working together to put forth an informational campaign to stop instances of mortgage fraud in Westchester.
Westchester County Executive George Latimer said: “Unfortunately, elderly individuals are the most frequent targets of fraud scams. Our elderly neighbors may be lonely, willing to listen, and are generally more trusting leaving them more vulnerable to scammers. We hope this information will encourage our senior population to be on high alert, especially during the holiday season.”
Director of the Westchester County Department of Consumer Protection Jim Maisano said: “The Consumer Protection Department is engaged each day in educating the public about the latest scams. Mortgage fraud is a particularly egregious scam often targeting seniors. Our best advice is to always avoid unsolicited communications to our phones, texts, emails, mail or even someone knocking on the door. Do not trust ANYONE who contacts you about your mortgage if you are not 100% sure who they are. If you think you have been contacted by someone engaging in mortgage fraud, call law enforcement immediately. If you ever have questions about any possible scams, call our office at 914-995-2155.”
DSPS Commissioner Mae Carpenter said: “We want to be sure that our seniors are informed about any and all possible threats to their good quality of life and the possessions they have worked so hard for.”
Victims are typically homeowners without liens or judgements and who are less likely to monitor their financial accounts. These perpetrators also conduct searches of County records to identify victims and property. Homes owned but not occupied are targets as well.
The illegal scheme is usually carried out in one of two scenarios;
- The perpetrator mortgages the victim’s property in the victim’s name, sells the property to unsuspecting buyers and keeps the proceeds, or:
- Transfers the property to an entity the criminal actor, in which the perpetrator controls (i.e. a limited liability company) and then mortgages the property.
In both situations, a cash-out mortgage loan is secured, which increases the risk of foreclosure or financial institution losses. Reports from mortgage lenders indicate that in order to qualify for these loans, the criminal actor employs individuals to answer requests for verification from lenders and hire complicit attorneys to serve as settlement agents at loan closings.
Unfortunately, elderly homeowners may not discover the fraud until long after the deed has been transferred out of the homeowner’s name, and the proceeds misappropriated.
- A notice to vacate from the County sheriff;
- A notice of foreclosure;
- A notice from the tax office, when owner tries to pay property taxes.
Lenders may not find out about the fraud unless they have exercised due diligence over and above what is required by their underwriting guidelines. It is also important to note that many fraudulent cash-out mortgage loans meet all underwriting requirements, making it that much harder to identify wrong-doing.
Education is the best remedy for helping older persons avoid mortgage fraud. Consumer Protection and DSPS suggest the following to avoid this type of theft:
- Monitor your credit report for suspicious activity
- Routinely inspect a property’s chain of title
- Do not respond to unsolicited advertisements
- Do not share personally identifiable information to unknown solicitors
- Use caution when giving out your social security number
- Do not sign anything you do not fully understand
- Do not answer phone calls from unknown callers and
- Do not share your personal identifiable information
You can learn more, or report fraud to any of the following: FBI Private Sector Coordinator at a local FBI Field Office at https;//www.fbi.gov/contact-us/field-offices: The FBI Internet Crime Complaint Center at www.ic3.gov; the U.S. Department of Housing and Urban Development’s Office of Inspector General at www.hudoig.gov/hotline-form; the Consumer Financial Protection Bureau (CFPB) at www.consumerfinance.gov/complaint or by calling 855-411-CFPB.
Additional resources are available via the U.S. Department of Justice Elder Fraud Initiative at www.justice.gov/elderjustice/financial-exploitation
You can also contact The Departments of Consumer Protection and Senior Programs and Services for guidance. For the Consumer Protection Department, please call (914) 995-2155 or the Department of Senior Programs and Services at (914) 813-6300.