Released on = December 1, 2005, 12:50 pm

Press Release Author = BY SCOTT SCHWEBKE STANDARD EXAMINER CAPITOL BUREAU

Industry = Law

Press Release Summary = A bill planned for the 2006 legislative session would allow
mortgage fraud to be prosecuted under Utah\'s anti-racketeering laws.


Press Release Body = SALT LAKE CITY - State Rep. Paul Ray will sponsor a bill next
year that would allow mortgage fraud cases to be prosecuted under Utah's
anti-racketeering laws.

The various aspects of mortgage fraud are currently prosecuted under different
sections of the state's criminal code. Classifying the offense as racketeering
would serve as a deterrent because perpetrators would likely face stiffer penalties
if convicted, said Ray, a Republican from Clinton.

Mortgage fraud fits the legal definition of racketeering because it can involve a
conspiracy among several people, including home buyers, builders, real estate agents
and lenders, said Ray, who is a commercial lending officer for Sterling Mortgage in
Salt Lake City.

Ray's bill would be beneficial, said Michael Blackburn, a spokesman for Perfect Home
Living, a Centerville organization that works with law enforcement agencies to catch
people involved in mortgage fraud.

"It would bring to the forefront a lot of attention to mortgage fraud," Blackburn
said. "The law is really lenient when it comes to mortgage fraud criminals. It's
harder to catch a person involved in mortgage fraud because of the money laundering
aspect."

Ray's bill will also request that the Utah Attorney General's Office hire a special
prosecutor and possibly an investigator at a cost of about $150,000 a year to
specifically handle mortgage fraud cases.

"Mortgage fraud is so complicated that it's better to get one person to prosecute
it," Ray said.

The FBI in Salt Lake City has more than 260 mortgage fraud cases awaiting
prosecution, he said.

In 2004 there were 255 complaints of mortgage fraud in Utah that involved funds from
federally insured lending institutions, representing losses of about $11.1 million,
according to the FBI.

Ray's bill would authorize the state to prosecute violators of the Federal Truth in
Lending Act. The act is designed to protect borrowers and requires lenders to
disclose payment schedules, finance charges, prepayment and late payment penalties,
and other information.

Utah's booming real estate market has made the state a hotbed for various mortgage
fraud schemes such as the use of straw buyers, in which a person pays someone to use
his identity and credit rating to get a home loan with a lower interest rate, Ray
said.

About Perfect Home Living

Perfect Home Living is a real estate leader for negotiating fair and balanced short
sales for families facing foreclosure via its national referral network of licensed
real estate industry professionals. Additionally, Perfect Home Living assists state
and federal crime task force units in addressing areas concerning mortgage and real
estate fraud. For more information about Perfect Home Living, schedule an
interview with Sheri Fitzpatrick or to request her as a guest speaker at your next
event or function, contact us @ 801.668.3952 M-F 9:00 AM - 5 PM MST or visit us
online at www.perfecthomeliving.com


Web Site = http://www.perfecthomeliving.com

Contact Details = Perfect Home Living
387 West 1375 North
Centerville, Utah 84014
Tel: 801.668.3952
Fax: 801.528.3321
Email: BusinessDevelopment@PerfectHomeLiving.com