The subprime lending environment is ripe for financial abuse, particularly abuse targeting senior homeowners. Despite their prevalence, it is very difficult to collect national statistics concerning these predatory practices. Most of the cases go unreported because victims often are not aware that they have been conned or are too embarrassed to admit that they have been scammed. Knowledge is an important weapon and it is urgent that citizens realize how easy it is for con artists to steal their homes. Counseling initiatives for senior borrowers currently exist within the context of reverse mortgages.
Increased enforcement represents another important weapon against predatory lending practices.
Senator Grassley has sent letters to the DOJ and the FBI requesting that they allocate the appropriate and necessary resources to combat these predatory lending practices. In addition, he has sent letters to each of the state Governors to raise their awareness of this issue and to provide them with a fraud unit model that has been successfully implemented in several counties in California. This model is based upon legislation passed by the California Assembly in 1995 which gave counties the ability to create a Real Estate Fraud Unit within their local District Attorney's Office. In an attempt to intensify efforts to combat and prosecute real estate fraud crimes, the legislation provides funding for additional prosecutors by authorizing an increase in recording fees for certain real property documents. Some helpful hints to protect this equity follow below.