In a bid to combat spiraling mortgage fraud California is set to introduce new legislation that will allow prosecutors easy access to mortgage broker and lender financial documents.
Currently prosecutors must have search warrants in order to obtain a broker’s financial documentation. Under the new laws however, prosecutors will only have to obtain a court order.
Mortgage fraud crimes will also be classified as either a misdemeanor or a felony, punishable by county jail time.
Prosecutor Mike Fitzsimmons told Mercury News that mortgage fraud cases in Californina has risen by 1,400 per cent from 2000 to 2008.
Georgia, Arizona, Nevada, North Carolina and Florida have all adopted felony mortgage fraud statutes.
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