Vous êtes sur la page 1sur 10

MIAMI-DADE COUNTY

FINAL OFFICIAL MINUTES


Mayor’s Mortgage Fraud Task Force

Stephen P. Clark Government Center


18th Floor Conference Rooms 3 & 4
111 NW 1st Street
Miami, Florida 33128

Wednesday, November 7, 2007


As Advertised

Harvey Ruvin, Clerk


Board of County Commissioners

Kay Madry Sullivan, Director


Clerk of the Board Division

Scott Rappleye, Commission Reporter


(305) 375-5108
CLERK’S SUMMARY AND OFFICIAL MINUTES
MAYOR’S MORTGAGE FRAUD TASK FORCE
November 7, 2007

The Mayor’s Mortgage Fraud Task Force convened in a meeting on November 7, 2007,
at 10:00 a.m. in the 18th Floor Conference Rooms 3 & 4 of the Stephen P. Clark Center,
111 NW First Street, Miami, Florida. The following members were present: Chairman
Glenn Theobald, Mr. Luis Andre Gazitua, Miami-Dade Police Department Sergeant
Richard Davis, Miami-Dade Police Department Lieutenant Cynthia Machanic, Ms.
Nancy B. Hogan, Mr. Robert Cohen, Mr. Raul Ballaga, Ms. Cathy Grimes Peel, Mr. Tom
Dixon, 11th Judicial Circuit Court of Florida Judge Maria Korvick, Mr. Robert Rosenau,
Mr. Michael Lipsitt, Mr. Fred Kerstein, Mr. William Kostrzewski, Ms. Lisa Vila, Mr.
James Gueits, Mr. Sol Genet, Mr. Jeff Hearne, Ms. Danielle Blake, Mr. Brian Piper, Mr.
Anthony Dimarco, Mr. Ted Conner, 11th Judicial Circuit Court of Florida Judge Celeste
Muir, Mr. Carlos Guzman, Mr. Zach Korbin, Mr. Marcus Saiz, Mr. Robert Otero, Mr.
John Schofield, Mr. Andy Madson, and State of Florida House Representative Carlos
Lopez-Cantera. The Honorable Harvey Ruvin, Clerk of the Circuit and County Courts,
and Deputy Clerk Scott Rappleye were also present.

1. Introductions

Chairman Theobald called the meeting to order at 10:17 a.m. He asked that Task Force
members introduce themselves.

Following the introductions, it was moved by Ms. Hogan that the September 19, 2007,
Task Force meeting minutes be approved. This motion was seconded by Mr. Ballaga, and
upon being put to a vote, passed unanimously.

2. Opening comments by Chairman

Chairman Theobald noted the mortgage fraud issue undertaken by the Task Force was
tremendous; that it was negatively impacting the local, state and national economy. He
pointed out that former Federal Reserve Chairman Alan Greenspan had indicated Miami
and Las Vegas were the top two epicenters for mortgage fraud. Chairman Theobald noted
Mayor Carlos Alvarez assembled this Task Force after the State Legislature passed the
Mortgage Fraud Bill. Since the September 19, 2007 Task Force meeting, the Mayor held
a press conference concerning mortgage fraud and 13 individuals were indicted and the
mortgage fraud case load had doubled since the Task Force was created and publicized,
Chairman Theobald noted. He presented statistical information to support his claims
regarding the increase in mortgage fraud since 2004. In concluding, Chairman Theobald
expressed his appreciation to the Task Force members and the Committee Chairs for their
efforts, and noted the Task Force had received positive responses from the media and
public.

Clerk’s Summary and Official Minutes Page 1 of 9


Mayor’s Mortgage Fraud Task Force
November 7, 2007
3. Guest Speaker, Honorable Harvey Ruvin, Clerk of the Courts

Chairman Theobald noted the Honorable Harvey Ruvin, Clerk, Miami Dade-County
Circuit and County Courts, would report on initiatives underway by the Clerk’s Office to
prevent mortgage fraud.

Mr. Ruvin expressed appreciation to the Mayor for his leadership and initiative in efforts
to combat mortgage fraud. He noted both mortgage and deed fraud had a negative impact
on the local economy and attributed to the chaos caused by sub-prime mortgages and to
declining confidence in the real estate market in South Florida.

One year after being elected as the Clerk of the Courts, he was contacted by a reporter
from ABC “Primetime” News regarding the falsification of quit claim deeds for vacant
lots owned by foreigners. He clarified that pursuant to Florida State Statute, the Clerk’s
Office had to record certain documents that appeared complete; and that record keeping
was not a process of verifying authenticity of a document or a signature. Mr. Ruvin
clarified the basic function of recordation was to provide notice to property buyers that an
encumbrance may exist or that the title may be defective. He noted when this problem
was initially presented to him, he proposed to solve the quit claim deed problem by
immediately sending a notice that a quit claim deed had been filed as well as a copy of
the quit claim deed to the last recipient of the tax notice for the property in the quit claim
deed. Mr. Ruvin noted that in 1994, implementing this proposed solution would have cost
$2 million per year. He stated that he met with representatives from the mortgage
industry to present this proposed solution, and that the representatives responded that
they were not worried about mortgage fraud; and that they simply built it into their
premiums.

Mr. Ruvin explained that the Clerk’s Office applied modern technology to the Recorder’s
Office; and that modern technology had simplified and reduced the cost to combat
fraudulent quit claim deeds through notifying people. He noted in May 2006, the Clerk’s
Office implemented a database that was interfaced with the Property Tax Collector’s
Office and this automated a system that generated a notice when a quit claim deed was
filed and this notice was sent, in the form of a postcard, to the recipient of the last tax bill
for the subject property that a quit claim deed had been filed to change the title for the
property; referring the property owner to the Clerk’s Website; and referring these
individuals to the Economic Crimes Division for additional questions. A total of 47,000
notices were generated and mailed since this system was implemented, Mr. Ruvin noted.

Mr. Ruvin stated that he was apprised that many owners had responded; that a number of
fraud cases had been uncovered as a result; and that this solution provided a window of
opportunity to apprise owners that they were being defrauded. He explained that this pro-
active approach to send information to the public for quit claim deeds was part of the
solution to mortgage fraud. Mr. Ruvin noted he was committed to working with members
of this Task Force and State and Federal officials to prevent mortgage fraud.

Clerk’s Summary and Official Minutes Page 2 of 9


Mayor’s Mortgage Fraud Task Force
November 7, 2007
Responding to Chairman Theobald’s inquiry regarding other counties in Florida using
this same notification system, Mr. Ruvin clarified this County was the only county in
Florida, and maybe one of few in the country, using this system. He noted after he had
appeared on “Primetime” and suggested this solution, the City of Philadelphia contacted
him and implemented it, notwithstanding the financial costs.

Mr. Dixon commended Mr. Ruvin for the work done by the Clerk of the Courts to
automate real estate records.

In response to Mr. Cohen’s question regarding the impact of electronic technology on the
cost of this method, Mr. Ruvin noted the original notification system included more
people, more postage, and more printing; and that electronic technology had lowered the
cost to $35,000-$40,000 per year. He clarified that this method was for quit claim deeds
only.

Mr. Cohen explained that transactions made by deeds that were not supported by a
financial source caused trouble. He clarified that if a warranty deed was recorded to
transfer a house and no new mortgage was recorded, then it was suspect. He suggested
that the Clerk’s Office broaden its efforts to target all transactions involving any
conveyance, including warranty deeds and mortgage satisfactions. Mr. Cohen concurred
that the solutions to Mortgage Fraud needed to include electronic or automatic
notification to the lenders and the other participants in the mortgage transactions that did
not include forged signatures and that did not expect honesty.

4. Committee Reports

BUSINESS PARTNERSHIP

Mr. Otero noted the Business Partnership Committee endeavored to develop a Code of
Conduct. He pointed out that he distributed a copy of the Code of Conduct and asked that
Task Force members vote to approve this proposed document.

Chairman Theobald clarified that the proposed Code of Conduct would apply to
individuals in the mortgage industry.

Pursuant to Chairman Theobald’s request for an explanation of this proposal, Mr. Otero
noted this proposed Code of Conduct was a public statement of principles, values, and
behaviors that was expected of professionals. He proceeded to read Sections 1.3, 1.4, and
the definition of “professionals” in Section 2.1, of this proposal.

Chairman Theobald expressed appreciation to the Committee for working diligently to


prepare this proposed Code of Conduct. He asked that Task Force members analyze this
proposal, and noted that the Task Force would vote to accept it at the next Task Force
meeting.

Clerk’s Summary and Official Minutes Page 3 of 9


Mayor’s Mortgage Fraud Task Force
November 7, 2007
EDUCATION COMMITTEE

Ms. Hogan noted that Ms. Danielle Blake was the new co-chair for the Education
Committee; and that Mr. Robert Perdigon, President, Perdigon Title; Mr. Doug Dewitt,
Realtor; and Mr. Phil Full, Magistrate, Property Appraiser’s Office, were newly
appointed Committee members. Ms. Hogan pointed out the Mortgage Fraud Complaint
Form was completed. She explained that the Committee attempted to compose a user
friendly and accessible form. She noted the Committee was working on a consumer piece
that the Committee intended to finish before December 31, 2007.

Ms. Hogan noted the Committee felt the police needed to implement a routing system to
avoid frustrating the community by telling them that the police had no resources to
investigate reported mortgage fraud cases. She apprised the Task Force that realtors
expressed concern regarding property values being listed much higher than the actual
value used during closing. She pointed out several mortgage fraud seminars that would
be held shortly. Ms. Hogan clarified that the fraud artists were developing new methods,
which corrupted the tax data and frustrated appraisers. She stated any piece of education
would enhance the Committee.

Chairman Theobald noted a few complaint forms had already been submitted online.
Responding to Ms. Hogan’s comments regarding a police routing system, he explained
that BankUnited met with the Office of the Attorney General of Florida; and that an 800
number would be included in a statewide mortgage fraud task force initiative; and that the
statewide task force would divide the State into the same seven regions used by the
Domestic Security Task Force.

REGULATORY COMMITTEE

Mr. Cohen noted the Regulatory Committee was analyzing the state of regulatory
enforcement and what changes would be helpful. He pointed out that many helpful
regulations existed; however, they were not enforced due to a lack of allocated resources.
He stated the notification system presented by Mr. Ruvin needed to be expanded to
provide self-executed regulations. Mr. Cohen noted the Committee would meet Monday,
November 12, 2007, to discuss more automated methods that could be implemented that
would provide lenders, sellers, and prospective homeowners information to identify they
had walked into a bad situation.

Chairman Theobald noted the County’s efforts to work with the State of Florida
Department of Business and Professional Regulation to immediately suspend licenses of
individuals arrested for mortgage fraud. He pointed out the violators usually had multiple
different companies and licenses; and that they would work under another person’s
license after they were released from jail.

Mr. Cohen pointed out the importance of a nationwide underwriter. He noted immediate
action needed to happen if an underwriter pulled out.

Clerk’s Summary and Official Minutes Page 4 of 9


Mayor’s Mortgage Fraud Task Force
November 7, 2007
LEGISLATIVE COMMITTEE

Chairman Theobald noted a number of items were suggested as potential legislation; and
that one was to help reduce residents’ taxes by allowing the Property Appraiser’s Office
to disregard the artificially inflated property values identified by the Miami-Dade Police
Department (MDPD). He clarified the impact of this suggestion would be pursuing the
mortgage fraud artists and preventing taxes and insurance from increasing without the
intrinsic value of the property increasing.

Chairman Theobald also noted the Legislative Committee considered potential legislation
concerning predatory lending. He explained predatory lending was when purchasers used
sub-prime or alternate aid financing, which would eventually require refinancing. He
clarified that state regulations governing predatory lending existed, but these regulations
did not include criminal penalties.

Representative Lopez-Cantera noted he was committed to continue filing legislation


regarding mortgage fraud. He stated home values should decline if mortgage fraud was
eliminated.

Mr. Corbin noted State of Florida Senator Gwen Margolis expressed her apology that she
could not attend this meeting for medical reasons. He identified the two unresolved issues
regarding quit claim deeds as 1) how to enforce verification, and 2) who would initiate
enforcement efforts. Mr. Corbin stated Senator Margolis thought the Task Force should
develop comprehensive legislation to combat quit claim deeds and include it in the
County’s legislative package. He pointed out the existing laws were not enforced well
and noted he questioned whether the lack of resources or the ambiguity of the laws
accounted for the poor enforcement. Mr. Corbin suggested the Task Force prepare an
explanation for the existing laws being poorly enforced.

LAW ENFORCEMENT

Miami-Dade Police Department (MDPD) Sergeant Davis commended Mr. Cohen for his
ideas regarding law enforcement; however, he, as well as Mr. Kerstein, Mr. Lipsitt, and
Mr. Pipe, had identified some loopholes in the existing laws that needed to be closed; and
that he would like to meet with the Regulatory Committee to discuss those loopholes.
Sergeant Davis noted the MDPD was investigating some houses listed with inflated sales
prices, as noted by Ms. Hogan in her report. In addition, he noted the Police Department
was in the process of developing a tracking system to capture all information on the
houses and the individuals involved in mortgage fraud crimes to provide information on
what cases each municipal police department was investigating. The MDPD would
provide the number of quit claim deed cases, mortgage fraud cases, and real estate fraud
cases that were being investigated, Sergeant Davis noted. He pointed out the MDPD was
providing continuous training to its employees. Mr. Davis noted a meeting would be held
before the end of November 2007, to discuss this matter with all statewide law
enforcement personnel.

Clerk’s Summary and Official Minutes Page 5 of 9


Mayor’s Mortgage Fraud Task Force
November 7, 2007
Chairman Theobald noted the Mayor announced 11 arrests at the October 2007 Press
Conference, and that the 11 arrests only represented the tip of the iceberg. He pointed out
that Mr. Robert Parker, Director, Miami-Dade Police Department, had committed more
resources to combat mortgage fraud.

5. Announce upcoming press conference

Chairman Theobald announced that the Mayor would hold another press conference at
10:00 a.m., on December 5, 2007, at the Miami-Dade Police Headquarters.

6. Open Forum/Public Comments

Mr. Rosenau, Chief, Florida Department of Financial Services, provided an overview of


the Office of Financial Services. He noted the Office had 54 dedicated investigators with
almost 500 cases, of which, 1/3 were mortgage related. He pointed out that the mortgage
problem was multi faceted and more than one agency needed to collaborate to address it
effectively.

Chairman Theobald commended Mr. Lipsitt for his contributions.

Following further discussion, Judge Korvick noted Judge Muir and she broadcasted their
first Spanish radio program, with the assistance of Mr. Ira Price and Major Pichardo, to
alert the public on mortgage fraud. She explained that the 11th Judicial Circuit would
provide continuing legal education lectures to prepare all judges for the influx of new
mortgage fraud cases.

Chairman Theobald said he would commit to publicizing mortgage fraud to prevent it


from occurring.

Mr. Stephen Lewis, Legal Services of Greater Miami Representative, expressed


appreciation to Judge Korvick for the Courts’ response to Mortgage Fraud. He pointed
out that a mortgage often foreclosed during a title dispute and both parties lost the
property. He suggested the Task Force consider a mechanism to temporarily stay
mortgage payments during title disputes. He commended Mr. Ruvin for the Clerk’s
Office’s online records system, which allowed a user to perform a public record search
on every transaction involving an individual and a company.

Following Mr. Guzman’s comments referencing a recent Miami Herald article


concerning the State Attorney’s Office’s Seniors Spoof Program and the Office’s efforts
to educate senior citizens, Ms. Hogan asked Mr. Guzman and Judge Korvick to provide
her with vital information concerning the people and groups mentioned in their
comments.

Ms. Blake expressed appreciation to the Education Committee for providing the
Mortgage Fraud Complaint Form.

Clerk’s Summary and Official Minutes Page 6 of 9


Mayor’s Mortgage Fraud Task Force
November 7, 2007
In response to Ms. Blake’s questions regarding the deadline for reporting mortgage fraud,
Mr. Saiz noted mortgage fraud could be reported anytime throughout the year. He
explained that the Legislature needed to provide the Property Appraiser, through the
Florida Statute, authority to disqualify certain sales from the analysis process, upon being
notified by law enforcement agencies that a sale was fraudulent. Mr. Saiz explained the
hearing process for the Value Adjustment Board.

Following Ms. Blake’s request that the Legislative Committee consider adding an
exception for mortgage fraud to the Value Adjustment petition deadline, Rep. Lopez-
Cantera noted a grace period could be added to the statute language.

Ms. Elena Carpenter, 3112 Commodore Plaza, Publisher, Miami Monthly Magazine,
appeared before the Task Force. She asked to whom the public could report mortgage
fraud and/or submit complaint forms. She questioned whether the Task Force would
consider whether the law enforcement agencies had adequate resources and manpower to
combat mortgage fraud.

Responding to Ms. Carpenter, Chairman Theobald clarified the Complaint Form would
go to the MDPD Economic Crimes Bureau, and the Bureau would forward the case to the
proper agency for that specific location. He noted that if the proper agency did not have
the resources to process the Complaint Form, the MDPD would process the case. He
pointed out that the County had doubled the number of detectives and that number would
increase on November 12, 2007.

Ms. Carpenter noted numerous realtors and professionals expressed concern regarding
the lack of attention given to their mortgage fraud complaints.

Chairman Theobald explained that law enforcement was not well prepared for mortgage
fraud when it occurred. He clarified that mortgage fraud was often not reported because
the buyer, seller, and realtor were happy with the transaction.

Following further discussion regarding the public reporting mortgage fraud and the
commitment of law enforcement agencies, Mr. Cohen noted the realistic time frame to
process a complaint form and to arrest and prosecute violators would be six months.

Mr. Clarke Jones, 7840 SW 54 Avenue, questioned how many of the 400 cases on file
were being prosecuted.

Chairman Theobald noted he could not provide an exact number; however, the details
would be provided at the December 5, 2007, Press Conference.

Responding to Mr. Jones’ question concerning whether the Task Force would identify
individuals guilty of mortgage fraud in the past and prosecute them, within the Florida
Statute of Limitations, Mr. Cohen noted the people committing mortgage fraud today
were the same people who committed it a few years ago.

Clerk’s Summary and Official Minutes Page 7 of 9


Mayor’s Mortgage Fraud Task Force
November 7, 2007
Mr. Ken Sapp appeared before the Task Force and suggested the Task Force consider
creating a form of oversight or auditing for the real estate profession. He questioned what
could be done to identify and stop perpetrators while they were in business.

Mr. Cohen stated he thought the mission statement of the Task Force was to eliminate the
guilty parties while they were in business and to deter future mortgage fraud.

Chairman Theobald pointed out the new Mortgage Fraud law addressed the issue of
fraudulent real estate transactions that were conducted outside the jurisdiction of the law
enforcement agency responsible for that property by allowing law enforcement agencies
to press charges in other counties.

Ms. Natalie Jackson, 13230 NW 7th Avenue, Vision to Victory Human


Services/Destination HOME, appeared before the Task Force. She expressed appreciation
for the complaint form. She noted she would follow up to ensure that the complaints filed
by her clients were processed. Ms. Jackson noted Vision to Victory provided home buyer
education workshops.

Mr. Dixon noted the victims of mortgage fraud were the lenders. He questioned why
lending companies did not attend today’s meeting (11/7).

Mr. Cohen pointed out everyone in the County were victims. He clarified that lenders
were the out-of-pocket victims, and that homeowners were victims because of the
impacts of mortgage fraud. He noted that the impacted lenders went out of business.

Mr. Dixon clarified that major banks were suffering tremendous financial losses; and that
they should report mortgage fraud.

Mr. Schofield pointed out the banks held only 20 percent of mortgage loans. He noted the
real estate market used sophisticated financial structures that decreased the impact on
banks.

Following further discussion regarding the impact of mortgage fraud on banks and the
reporting aspect of Mortgage Fraud, Mr. Ruvin noted the Clerk of the Courts was
pursuing online foreclosure auctions. He pointed out that online foreclosure auctions
would provide audit trails that could help the situation.

Mr. Carballo pointed out the complaint form needed to include as much information as
possible, including all documents that supported the claim to enable the MDPD
Economic Crimes Bureau to conduct a thorough investigation and to expedite the
process.

Mr. Dimarco noted the banks approached mortgage fraud seriously.

Clerk’s Summary and Official Minutes Page 8 of 9


Mayor’s Mortgage Fraud Task Force
November 7, 2007
7. Closing/Next meeting

Chairman Theobald announced the next Mayor’s Mortgage Fraud Task Force Meeting
would be January 16, 2008, from 10:00 a.m. to 12:00 p.m. He also noted Mayor Alvarez
would hold a Mortgage Fraud Press Conference December 5, 2007, 10:00 a.m., at the
Miami-Dade Police Department Headquarters.

It was moved by Mr. Dixon that this meeting of the Mayor’s Mortgage Fraud Task Force
be adjourned. This motion was seconded by Mr. Otero. Hearing no objections, the
meeting adjourned at 11:57 a.m.

_________________________________
Glenn R. Theobald, Chairman
Mayor’s Mortgage Fraud Task Force

Clerk’s Summary and Official Minutes Page 9 of 9


Mayor’s Mortgage Fraud Task Force
November 7, 2007

Vous aimerez peut-être aussi