Mortgage fraud fight goes digital in NYC

The city has launched a new computer tracking system designed to automatically flag questionable real estate transactions in its public property records database that could be indicative of mortgage fraud, Mayor Michael Bloomberg announced alongside several district attorneys yesterday. The system, whose red flags include multiple, rapid changes in ownership, property transfers at below market prices and property sales at prices just barely below the minimum threshold for tax filings, will be monitored by the mayor’s Financial Crime Task Force. Because mortgage fraudsters have often targeted immigrants and the elderly in their schemes, the system will also look for those characteristics in property owners when identifying potentially shady deals. The task force will pass along flagged addresses to various law enforcement agencies. “These leads will give law enforcement a powerful assist in rooting out and preventing mortgage fraud in our neighborhoods,” Bloomberg said. TRD

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