Utah Senate bill takes aim at mortgage fraud
The bill, SB199, sponsored by Sen. Sheldon Killpack, R-Syracuse, would allow regulators to investigate and fine unlicensed people who misrepresent themselves as real estate agents, brokers, real estate appraisers or mortgage officers.
Derek Miller, director of the Utah Division of Real Estate, said the strongest action the division can take under the current law is to take someone's license away. The division cannot take action against unlicensed people who are acting as real estate professionals.
"What this bill really does is allow us to go after the people who don't have a license and are committing fraud," Miller said. "Somebody who is supposed to be licensed shouldn't be left out of the division's jurisdiction."
Miller said the division has even had cases where licensed professionals have committed fraud but have given up their licenses to escape administrative action.
"They walk away and then keep on doing the same things they were doing before, but we can't touch them because they gave up their license," Miller said.
"When somebody is flipping properties at half-a-million dollars a clip, $2,500 is nothing," Miller said. "What this change does is it says for the greater of the $2,500 or the amount that they profited by."
John Norman, executive director of the Utah Mortgage Lenders Association, said his group backs the proposed legislation.
The bill also has the support of the Utah Association of Realtors, the Utah Association of Mortgage Brokers and the Utah Association of Appraisers.
The FBI listed Utah as No. 1 in the country in 2001 for the amount of mortgage fraud cases reported. In a December report, the Mortgage Asset Research Institute ranked Utah No. 2 in the nation in mortgage fraud.
The Senate Business and Labor Standing Committee will discuss SB199 today.
E-mail: danderton@desnews.com
Recent comments
The problem with Mortgage Fraud...? People are greedy and want something...
Anonymous | Nov. 7, 2007 at 2:17 p.m.
