Feds prosecute 18 people South Florida for mortgage fraud

Federal prosecutors charge that mortgage brokers, appraisers, title agents, and loan officers took more than $50 million in fraudulent home loans to buy luxury condos in South Beach and homes in Southwest Ranches.
18 dependents from South Florida were named.  Florida currently leads the nation in suspected home loan fraud.  Fannie reported in June that four of the five Zip Codes containing the largest share of questionable loans were in Miami-Dade county.

Last week Mayor Carlos Alvarez announced his own mortgage fraud task force to address the problem locally in Miami.  US Attorney R. Alexander Acosta announced a new federal-state mortgage fraud initiative in Florida.

The mortgage brokers allegedly created counterfeit documents, such as W-2s and pay stubs, to fraud lenders.   The appraisers artificially inflated home values so the defendants could take out large sums of money in cash-back-at-closing schemes.