NEW YORK—Brooklyn is combating an “epidemic” of real estate fraud, declared Brooklyn District Attorney Charles Hynes.
On Monday, U.S. Sen. Charles Schumer joined Hynes to announce the indictment of 17 people allegedly involved in various real estate crimes, including reverse mortgage scams, loan modifications, deed theft, and mortgage fraud.
The mass arrest was the endeavor of the Mortgage Fraud and Real Estate Crimes Unit (MFAREC). Schumer obtained a $875,000 grant in 2009 for the DA to set up the unit, which combats mortgage fraud.
“Since its inception in March 2009, the Mortgage Fraud and Real Estate Crimes Unit has undertaken approximately 250 investigations resulting in 40 prosecutions,” said Hynes. That is double the number of investigations and prosecutions that occurred in the decade leading up to the unit’s formation.
“Despite these successes, the work of the unit has just begun. In the last four months alone, we brought [17] prosecutions,” said Hynes.
Reverse mortgage fraud and loan modification fraud are getting increasingly more common, according to the DA office. Reverse mortgage is a loan for senior citizens; they can use a portion of their home’s equity as collateral. It is an easy way for senior citizens to access money to maintain their standard of living.
On Monday, U.S. Sen. Charles Schumer joined Hynes to announce the indictment of 17 people allegedly involved in various real estate crimes, including reverse mortgage scams, loan modifications, deed theft, and mortgage fraud.
The mass arrest was the endeavor of the Mortgage Fraud and Real Estate Crimes Unit (MFAREC). Schumer obtained a $875,000 grant in 2009 for the DA to set up the unit, which combats mortgage fraud.
“Since its inception in March 2009, the Mortgage Fraud and Real Estate Crimes Unit has undertaken approximately 250 investigations resulting in 40 prosecutions,” said Hynes. That is double the number of investigations and prosecutions that occurred in the decade leading up to the unit’s formation.
“Despite these successes, the work of the unit has just begun. In the last four months alone, we brought [17] prosecutions,” said Hynes.
Reverse mortgage fraud and loan modification fraud are getting increasingly more common, according to the DA office. Reverse mortgage is a loan for senior citizens; they can use a portion of their home’s equity as collateral. It is an easy way for senior citizens to access money to maintain their standard of living.
