US street gangs take to mortgage fraud

The FBI has revealed that street gangs have begun committing mortgage fraud in the US.

In an exclusive interview with Mortgage Strategy, Scott Borshears, supervisory special agent with the Federal Bureau of Investigation, says it has had to change its crime-fighting tactics to catch fraudsters usually more associated with drugs and guns.

Borshears says typical mortgage fraudsters in the US are white collar criminals who fall into mortgage fraud while pushing the boundaries of what is ethical.

But he adds: “We are increasingly seeing street gangs that have figured how to get into mortgage fraud. They can be harder to catch because they are harder to identify.

“It’s not the same as policing drug deals, where you can arrest guys who have cocaine on them. With mortgage fraud you have to put the paperwork together and make sure your case is watertight, no matter who is committing the crime.”