Mortgage Fraud: White-Collar Crime with Long-Standing Community Effects
ANDREW T. CARSWELL and DOUGLAS C. BACHTEL
PAM, Vol. 12 No. 4, (2007)
Mortgage fraud, a white-collar crime committed against lending institutions, has grown tremendously over the past few years across the United States. Mortgage fraud has community implications, and does not follow traditional categories of white-collar crimes, which usually are limited in the types of victims affected. Because of the negative externalities that emanate from neighborhoods hit by cases of mortgage fraud, the ramifications of this crime have long-lasting and harmful effects for multiple parties, in terms of quality of life and financial hardship. This paper explains the implications that mortgage fraud can have on both affected neighborhoods and public administrators. Future research opportunities are also addressed regarding this complex phenomenon. Finally, a brief list of recommendations addresses the challenges brought on by mortgage fraud.