In response to the increasing concern about mortgage fraud that is perpetrated against the real estate finance industry, many states have introduced legislation similar to the 2005 Georgia Residential Mortgage Fraud Act that criminalizes mortgage fraud and provides imprisonment and fines for those who perpetrate fraud during the mortgage lending process.
MBA supports legislation that criminalizes the act of mortgage fraud against the lending industry. However, MBA wants to ensure that laws are put into place that make a distinction between fraud against lenders and predatory lending and include provisions to help law enforcement address the former. Unlike predatory lending, which can be subjective, mortgage fraud against lenders is objectively a criminal act that threatens mortgage lenders and sometimes borrowers.
For more information about state mortgage banking issues, visit the MBA State Legislative and Regulatory Resource Center. www.mortgagebankers.org/Advocacy/StateLegislativeandRegulatoryResources.
As a service to its members, MBA also maintains a comprehensive online password protected resource where MBA members can review state legislation and regulations twenty-four hours a day, seven days a week. To access the State Legislative Database, visit its log-in page www.mortgagebankers.org/tools/multistate.aspx
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