At a productive, day-long meeting in Phoenix this week, U.S. Attorney General Eric Holder and I pledged to work together to prevent, prosecute and punish mortgage fraud crime in Arizona. These efforts are reinforced by an additional $1.7 million this year from the U.S. Department of Justice specifically allocated for mortgage-fraud enforcement in Arizona.

Attorney General Holder leads the U.S. Financial Fraud Enforcement Task Force, a federal-state, interagency group established by President Obama last November.  

Unfortunately, Phoenix was a logical choice for this Mortgage Fraud Summit since   Arizona last year had the second highest home foreclosure rate in the country.  Metropolitan Phoenix currently ranks fourth in the nation for the number of Suspicious Activity Reports (SARs) filed by financial institutions concerning suspected mortgage fraud. With a high number of desperate homeowners facing foreclosure, fraudsters have abundant targets in our State.

Easing the foreclosure crisis and stopping mortgage fraud are urgent challenges.

Arizona’s economic recovery still lags the rest of the nation in large part because of the foreclosure crisis and the high volume of mortgage fraud in our State.

My Office has stopped many bad actors with criminal prosecutions and civil lawsuits, but mortgage fraud in Arizona today remains far too common. I have directed the Criminal and Consumer Protection Divisions of my Office to make reducing mortgage fraud a top priority. Our close partnership with federal agencies promises to make these enforcement efforts all the more effective.

Mortgage fraud operators have disproportionately targeted some of our Hispanic neighborhoods. I continue to reach out to the Spanish-speaking community on this issue. I applaud the Spanish-language programs that give homeowners useful information about where to file a complaint, how to get counseling help and how to avoid becoming a victim.

Foreclosure prevention education efforts are the best way to stop the frauds. I directed funds from a multi-state, consumer fraud settlement with Countrywide Financial Corp. to a dozen HUD-certified, nonprofit housing counseling entities around the State so they could hire additional staff and counselors to work with homeowners on foreclosure alternatives, as well as provide counseling help for consumers at risk of losing their homes.

I am committed to using the full authority of the Attorney General's Office to fight mortgage fraud, stabilize the state's housing market and strengthen Arizona’s economy.

Terry Goddard
Attorney General