Mortgage Fraud Continues to Decline in Georgia

May 24, 2011


Atlanta, Georgia - According to the latest figures released by the LexisNexis® Mortgage Asset Research Institute (MARI) in their May 2011 report, mortgage fraud in Georgia has decreased significantly over the past year.  Georgia is no longer ranked in the top ten for mortgage fraud and has a Mortgage Fraud Index (MFI) of 66, which is well below the MFI industry baseline of 100, which is the level of reported fraud and misrepresentations one would expect given the level of loan originations.  This is the first time in over a decade Georgia’s MFI has been below 100 and down from 506 in 2003 when Georgia led the nation in mortgage fraud.

“We are extremely pleased to receive such positive news”, stated Department of Banking and Finance Commissioner Rob Braswell. “The dramatic, but steady decline in mortgage fraud in Georgia over the last seven years is the culmination of collaborative efforts by this department; the Office of Attorney General; local, state and federal law enforcement authorities and prosecutors; industry leaders; and the grassroot efforts of the Georgia Real Estate Fraud Prevention and Awareness Coalition.”

The Department currently supervises approximately 800 non-depository mortgage lenders, brokers, processors and 4,800 loan originators.  In 2003, due to the volume of mortgage fraud in the state of Georgia, the Department instituted a risk-based examination program, which primarily focuses on investigating reported fraudulent activity.  Since the implementation of the risk-based examination program, the number of administrative actions and referrals to law enforcement and other regulatory agencies increased tremendously.  Over the past seven years, the Department has issued 831 Cease and Desist Orders and 234 Intent to Revoke Orders.  In addition, the Department has made 129 mortgage fraud referrals to law enforcement and other regulatory agencies totaling more than $200 million.

 

Contact
Rod Carnes
Deputy Commissioner for Non-Depository Financial Institutions
Phone: (770) 986-1371
E-mail:   rodc@dbf.state.ga.us


The Department has regulatory and/or licensing authority over state-chartered banks, credit unions, trust companies, mortgage loan originators, mortgage brokers, mortgage lenders, mortgage processors, check cashers, sale of check companies, money transmitters, international banking organizations, and bank holding companies conducting business in Georgia.  Visit us on the Web at: http://dbf.georgia.gov/