Feds Cracking Down on Mortgage Identity Theft

by Heather Wells

In a recent article dated June 20, 2008 from npr.org, writer Dina Temple-Raston reports on the arrest of hundreds of people believed to be guilty of scamming the public out of millions of dollars of hard earned home equity.

She writes, “instead of stealing an identity to secure a credit card, scammers have been zeroing in on people they think have a lot of equity in their homes. They steal their identities, then go online and get a home equity line of credit on that person’s house and take the money.”

It’s a terrifying scenario for consumers who have worked hard for years to establish good equity and credit. As someone who works directly with victims of id theft, I know how frustrating it is for victims when the person who stole their identity is never caught or prosecuted. I am hoping that the news of these crooks getting arrested will bring about a feeling of justice for victims; that something is being done and people are being punished.

Temple-Rason concludes her piece with this warning, “the FBI is sending a specific message: If you are involved with mortgage fraud — whether on Wall Street with high-level investors, or on Main Street with ordinary homeowners — the bureau intends to catch and prosecute you.”

Score one for the little guy. For more, check out this video: