Mortgage fraud bill introduced in the Senate.(Briefing Book)

A bill introduced in the Senate would provide the first federal definition of mortgage fraud, as well as criminalize the fraudulent activities.

The bill, S. 2280, the Stopping Transactions which Operate to Promote Fraud, Risk and Underdevelopment Act (STOP FRAUD Act), was introduced Feb. 14 by Sen. Barack Obama (D-Illinois).

Among other provisions, the STOP FRAUD Act would amend the U.S. Code by adding a section that criminalizes mortgage fraud against lenders. The bill would also expand the definition under the Bank Secrecy Act of who is required to report incidences of "suspicious activity" to include mortgage professionals, such as appraisers, brokers, …