The Westchester County Departments of Consumer Protection and Senior Programs and Services, DSPS, have joined forces to raise awareness of older
homeowners falling victim to mortgage fraud. According to the Federal Bureau of Investigation Office of Private Sector, criminal actors are using forgery,
identity theft and online activity to target older homeowners and conceal unlawful activity from their victims, lenders and law enforcement.
According to a recent report, the FBI’s Criminal Investigative Division, CID, in coordination with the FBI’s Office of Private Sector, OPS, concluded that there
was an increasing threat of mortgage fraud targeting the elderly homeowner equity. In response, the two County Departments are working together to put forth
an informational campaign to stop instances of mortgage fraud in Westchester.
“The Consumer Protection Department is engaged each day in educating the public about the latest scams,” said Jim Maisano, director of the county Department of Consumer Protection. “Mortgage fraud is a particularly egregious scam often targeting seniors. Our best advice is to always avoid unsolicited
communications to our phones, texts, emails, mail or even someone knocking on the door.
Do not trust anyone who contacts you about your mortgage if you are not 100% sure who they are. If you think you have been contacted by someone engaging
in mortgage fraud, call law enforcement immediately. If you ever have questions about any possible scams, call our office at 914-995-2155.”
Victims are typically homeowners without liens or judgments and who are less likely to monitor their financial accounts. These perpetrators also conduct
searches of county records to identify victims and property. Homes owned but not occupied are targets as well. “We want to be sure that our seniors are informed about any and all possible threats to their good quality of life and the possessions they have worked so hard for,” said Mae Carpenter, DSPS commissioner. The illegal scheme is usually carried out in one of two scenarios:
• The perpetrator mortgages the victim’s property in the victim’s name, sells the property to unsuspecting buyers and keeps the proceeds.
• Transfers the property to an entity the criminal actor, in which the perpetrator controls (i.e. a limited liability company) and then mortgages the property.
In both situations, a cashout mortgage loan is secured, which increases the risk of foreclosure or financial institution losses. Reports from mortgage
lenders indicate that in order to qualify for these loans, the criminal actor employs individuals to answer requests for verification from lenders and hire complicit attorneys to serve as settlement agents at loan closings.
Unfortunately, elderly homeowners may not discover the fraud until long after the deed has been transferred out of the homeowner’s name, and the
proceeds misappropriated. Homeowners typically discover the fraud when they receive:
• A notice to vacate from the county sheriff.
• A notice of foreclosure
• A notice from the tax office, when owner tries to pay property taxes.
Lenders may not find out about the fraud unless they have exercised due diligence over and above what is required by their underwriting guidelines. It is also important to note that many fraudulent cash-out mortgage loans meet all underwriting requirements, making it that much harder to identify wrongdoing.
Education is the best remedy for helping older persons avoid mortgage fraud. Consumer Protection and DSPS suggest the following to avoid this type of
theft:
• Monitor your credit report for suspicious activity
• Routinely inspect a property’s chain of title
• Do not respond to unsolicited advertisements
• Do not share personally identifiable information to unknown solicitors
• Use caution when giving out your social security number.
• Do not sign anything you do not fully understand
• Do not answer phone calls from unknown callers
• Do not share your personal identifiable information.
To learn more, you can contact The departments of Consumer Protection and Senior Programs and Services for guidance. For the Consumer Protection
Department, please call 995-2155 or the Department of Senior Programs and Services at 813-6300.
