South Florida Real Estate News: Week Ending February 26

By Mark Schecter

Mortgage Fraud Summit in South Florida

The first mortgage fraud summit will take place in South Florida. The Financial Fraud Enforcement Task Force chose Florida because it is among the worst states in the nation when it comes to the mortgage fraud crisis. According to a recent report from U.S. Financial Crimes Enforcement Network, South Florida is number one for residents involved in mortgage fraud related activity.

The agenda of the summit lists not only fraud schemes, but also predatory lending and other criminal acts against current and future Florida homeowners. Currently, there are 23 task forces at work in our nation and 67 mortgage fraud groups.

Hundreds Turn Out for Mortgage Modification Seminar

During a recent loan modification seminar, the Palm Beach County Convention Center was extremely busy and packed with homeowners desperately trying to modify their mortgages. There were people from Florida, the west coast and mid states in attendance.

Many homeowners are feeling the financial pressure and attended the seminar to get answers to their questions along with some sort of relief from the steep prices and terms that they have to deal with.

Some lenders’ failure to be straightforward with their clients and discuss their options has led many homeowners to seek help through seminars and conventions. Although travel costs can be expensive, the end result may be worth it if these individuals are able to modify their mortgages and/or discover better options.

Florida Cracks Down on Home Loan Rescue Companies

State regulators in Florida are cracking down on unlawful loan mortgage rescue companies. Several operations in South Florida have been ordered to stop their practices immediately due to recurring illegal activity.

As of January 1st 2010, loan modifiers, originators and lenders were all mandated to have a state mortgage broker’s license. As for upfront fees, they have been prohibited since 2008 although some businesses continue to operate by disobeying these laws. This is a welcome enforcement that will likely ease the minds of South Florida homeowners.