The Ingham County Board of Commissioners on Tuesday evening approved a $60,000 contract to provide legal assistance to homeowners in the county dealing with foreclosures possibly based on false documents, and on Tuesday morning, the Michigan Senate passed a legislation that would make mortgage document falsification a crime in the state.
In the Michigan Senate, SB 43 and SB 44 were passed. Those pieces of legislation would create a felony in state law to prosecute mortgage fraud. A Senate Fiscal Agency analysis notes that while prosecuting mortgage fraud committed by lenders is possible, it can only be done under other laws such as forgery or false pretenses. The bills create a felony for those convicted of mortgage fraud of $100,000 or more and provides for a fine of $100,000 as well as up to 15 years in prison.
“Fraudulent mortgages create problems for homeowners, communities and local governments who then have to deal with the aftermath of foreclosed homes,” said Sen. Tupac Hunter (D-Detroit). “These bills will provide prosecutors with better tools to deal with unscrupulous mortgage lenders who only create more problems for communities across our state.”
Hunter sponsored the legislation. With the Senate’s approval complete, the bills now move to the House for action.
“It is time for Michigan to join the 20 other states that have mortgage fraud laws to protect their citizens and communities” said Hunter. “These bills will help us get rid of the bad lenders so we can focus our efforts on trying to stabilize our neighborhoods by helping families stay in their homes.”
Hunter and the Michigan Senate are not the only elected officials taking heed of the on-going foreclosure crisis. Democrat Curtis Hertel, Jr. who serves as the Ingham County Register of Deeds, won full approval of a $60,000 contract with Legal Services of South Central Michigan to battle foreclosure and mortgage fraud. That move comes after his office has uncovered over 1,000 documents it believes are fraudulent.
Hertel also launched a hotline for residents to call. The hotline number is 517-676-7210 and will serve only property owners in Ingham County.