Mortgage Fraud Initiative

About the Program

Category: Criminal Justice and Public Safety (Best in Category)

Year: 2010

The Mortgage Fraud Initiative is a multi-faceted approach to address the fraudulent roots of the foreclosure crisis that struck significant portions of Hennepin County beginning in 2007. Under the leadership of the Hennepin County Attorney’s Office, representatives from Taxpayer Services, the Offices of the Recorder and Sheriff along with significant involvement from community groups, collaborated in gathering critical information that helped identify fraudulent transactions leading to foreclosures. At its core, this program involved dedicating prosecutorial resources at assist law enforcement in the investigation of mortgage fraud and, once charged cases were brought to court, prosecute the cases to conclusion. Owing to the complexity of the real estate transactions that underpin mortgage fraud, the Mortgage Fraud Initiative adopted a multi-disciplinary approach. Representatives from county offices responsible for tracking property and foreclosure data met with County Attorney representatives so that a coordinated effort could be achieved. Through this collaboration, over thirty-five individuals and companies in the real estate industry have been identified, prosecuted and convicted for their roles in property-flipping for illicit profits. In recognition of the success of the initiative, the federal government recently awarded the Hennepin County Attorney’s Office and the Housing Preservation Project of St. Paul a $1.2 million grant to further develop a mortgage fraud data base and bring additional mortgage fraud prosecutions.