A loan shark is a person or entity that offers unsecured loans at high interest rates to individuals, often backed by blackmail or threats of violence. Mortgage fraud is defined as a criminal act where the intent is to misrepresent or omit information on a mortgage loan application or to obtain a larger loan than would have been obtained had the lender known the truth. In addition fraud can be committed by attorneys, appraisers, accountants, bank employees and mortgage loan officers. You name it, the magic of fraud can be done by anyone. Today in the New York State area, 41 people were arrested for mortgage fraud in a scheme named Operation Bad Deeds. At this time the media says they defrauded banks in the amount of close to 64 million. I would imagine that it is much more than that. As the Fed unravels the bad deeds performed since their investigation began, they will inevitably uncover much more damage- adding more millions to the current number. Acts of industry fraud, whether it banking ,wall street or health care are not only criminal offenses but completely immoral. As Bernie Madoff puts his head down on his (rather thin) pillow at night, he might be thinking, in retrospect, that he should not have done what he has done. Damage that fraud and theft create is far more reaching in scope and depth. The affect is as far reaching as a black widow, harming innocent people both financially and emotionally. Creating undue pain to others for one’s own unsightly gain is a sin of the greatest offense. For another group of slime in my industry to be convicted, is a painful embarrassment for professionals with high standards. I set myself, not above but apart from anyone that has used their professional position to harm others. This is why the mortgage industry must be so heavily regulated to the level that it hurts professionals like myself and others. Mortgage fraud is a criminal act, and no person with a criminal record is allowed to work in this industry, according to new regulation. For those companies that hired or did business with them before, shame on them!  We are all suffering from this disaster, but the consumer is hurting most of all. Again, I am very upset by this and warn all potential borrowers to know who you are doing business with. If it is too good to be true, then it is!

Dale Robyn Siegel