It never fails that a little research will change one's opinion. After ranting about the witch hunt being conducted to catch real estate professionals in fraud, a little research has given me a heads up. According to MSN Money, Minnesota is the second highest ranked state in the nation for credit scores with an average score of 708, only one point less than our neighbor South Dakota which ranks first. Experian ranks Minneapolis in first place and Boston in second.
However, Alex Stenbeck, a Minneapolis St. Paul mortgage broker quotes some disturbing information on his blog. The MARI (Mortgage Asset Research Institute) has published a report that ranks Minnesota as 8th in reported mortgage fraud in the nation and 4th in sub-prime mortgage fraud! If we have such good credit scores why would we need mortgage fraud and why would we need that many sub-prime mortgages? Since we have such high scores, it would seem no one would need to commit fraud to get a mortgage. Obviously, these reports are why the Department of Commerce, HUD and the FBI are investigating the behaviors of real estate professionals in Minneapolis and St. Paul. Even though it feels like a witch hunt, there must be some basis for the allegations if that many people are reporting mortgage fraud in our towns!
Comments