Press Release Author = BY SCOTT SCHWEBKE STANDARD EXAMINER CAPITOL BUREAU
Industry = Law
Press Release Summary = A bill planned for the 2006 legislative session would allow mortgage fraud to be prosecuted under Utah\'s anti-racketeering laws.
Press Release Body = SALT LAKE CITY - State Rep. Paul Ray will sponsor a bill next year that would allow mortgage fraud cases to be prosecuted under Utah's anti-racketeering laws.
The various aspects of mortgage fraud are currently prosecuted under different sections of the state's criminal code. Classifying the offense as racketeering would serve as a deterrent because perpetrators would likely face stiffer penalties if convicted, said Ray, a Republican from Clinton.
Mortgage fraud fits the legal definition of racketeering because it can involve a conspiracy among several people, including home buyers, builders, real estate agents and lenders, said Ray, who is a commercial lending officer for Sterling Mortgage in Salt Lake City.
Ray's bill would be beneficial, said Michael Blackburn, a spokesman for Perfect Home Living, a Centerville organization that works with law enforcement agencies to catch people involved in mortgage fraud.
"It would bring to the forefront a lot of attention to mortgage fraud," Blackburn said. "The law is really lenient when it comes to mortgage fraud criminals. It's harder to catch a person involved in mortgage fraud because of the money laundering aspect."
Ray's bill will also request that the Utah Attorney General's Office hire a special prosecutor and possibly an investigator at a cost of about $150,000 a year to specifically handle mortgage fraud cases.
"Mortgage fraud is so complicated that it's better to get one person to prosecute it," Ray said.
The FBI in Salt Lake City has more than 260 mortgage fraud cases awaiting prosecution, he said.
In 2004 there were 255 complaints of mortgage fraud in Utah that involved funds from federally insured lending institutions, representing losses of about $11.1 million, according to the FBI.
Ray's bill would authorize the state to prosecute violators of the Federal Truth in Lending Act. The act is designed to protect borrowers and requires lenders to disclose payment schedules, finance charges, prepayment and late payment penalties, and other information.
Utah's booming real estate market has made the state a hotbed for various mortgage fraud schemes such as the use of straw buyers, in which a person pays someone to use his identity and credit rating to get a home loan with a lower interest rate, Ray said.
About Perfect Home Living
Perfect Home Living is a real estate leader for negotiating fair and balanced short sales for families facing foreclosure via its national referral network of licensed real estate industry professionals. Additionally, Perfect Home Living assists state and federal crime task force units in addressing areas concerning mortgage and real estate fraud. For more information about Perfect Home Living, schedule an interview with Sheri Fitzpatrick or to request her as a guest speaker at your next event or function, contact us @ 801.668.3952 M-F 9:00 AM - 5 PM MST or visit us online at www.perfecthomeliving.com
Web Site = http://www.perfecthomeliving.com
Contact Details = Perfect Home Living 387 West 1375 North Centerville, Utah 84014 Tel: 801.668.3952 Fax: 801.528.3321 Email: BusinessDevelopment@PerfectHomeLiving.com
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