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Home | News | Government | Congressman Introduces Mortgage E-Verify Act for GSE and FHA Mods
Hudson & Marshall
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Congressman Introduces Mortgage E-Verify Act for GSE and FHA Mods

""Rep. Kenny Marchant"":http://marchant.house.gov (R-Texas) has introduced a new bill, the Mortgage E-Verify Act. It would require a mortgagor to be verified under the E-Verify program as a condition for modification of a home loan held by Fannie Mae or Freddie Mac, or insured by the Federal Housing Administration (FHA).

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The E-Verify program is a voluntary, Web-based system run by the federal government to help businesses certify that potential employees are legally authorized to work in the United States.

Marchant, who is a member of the House Financial Services Committee, said, ""My bill will potentially save millions by cutting down on fraudulent claims from illegal

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immigrants and protect taxpayers from subsidizing the restructuring or renegotiation mortgages of illegal immigrants.""

According to Marchant, mandating the use of the E-Verify program to establish a homeowner's legal status would help eliminate waste, fraud, and abuse, and bring integrity to the mortgage modification process.

The Treasury Department's ""Financial Crimes Enforcement Network"":http://www.fincen.gov (FinCEN) estimates that mortgage fraud increased 1,411 percent from 1997 to 2005. In addition, Marchant says two-thirds of fraud reports in the last decade have been the result of falsified statements on loan documents.

""My bill would curb these abuses and protect the taxpayers,"" Marchant said.

On his Web site, Marchant cites a case in Nevada where a mortgage company branch manager conspired to manufacture and submit false employment and income documentation for borrowers, most of whom were illegal immigrants.

Fifty-eight of the 233 fraudulent FHA loans, totaling $6.2 million, have gone into default, costing HUD nearly $2 million. The branch manager was found guilty on 32 counts of submitting false information to HUD, and one count of conspiracy.

Hudson & Marshall

About Carrie Bay

Carrie Bay
Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.

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