Fraud against lenders is a rapidly growing problem. It can affect not only lending institutions, but innocent homeowners and the community at large. It is a problem that requires the close cooperation of law enforcement and the real estate finance industry. That cooperation includes educating the general public as to what constitutes mortgage fraud and what the consequences of mortgage fraud are.
To that end, the Federal Bureau of Investigation and the Mortgage Bankers Association have jointly produced a Mortgage Fraud Warning Notice
. This Warning Notice makes clear that mortgage fraud is a federal offense with serious penalties, and will be fully investigated and prosecuted by the appropriate authorities. The FBI and MBA strongly encourage lenders to consider integrating the Warning Notice into their loan processes.
The use of this Warning Notice is completely voluntary. It is the lender's decision as to if and how the form should be worked into the loan origination process.
Lenders may wish to consider using the Warning Notice for all mortgage secured transactions and in all processes that can prevent fraudulent activity from occurring.
The Mortgage Fraud Warning Notice may be resized in order to incorporate additional elements that address or reduce mortgage elements. Such elements may include signature fields or relevant state and local statues. However, there shall be no alteration, addition, deletion or addendum within the borders of the Mortgage Fraud Warning Notice as released. Click here
to view a sample resizing with signature fields. Any additional elements must remain outside the border of the Mortgage Fraud Warning Notice. It is entirely the lender's decision to incorporate additional elements.
There shall be no alteration of the FBI seal under any circumstances, and the seal may not be used outside of its placement within the Mortgage Fraud Warning Notice.