County Trust Fund Established To Fight Mortgage Fraud, Despite DA's Claim That Local Mortgage Fraud Is Non-Existent

In Bakersfield, California, CBS 29 / FOX 58 reports:

• Concerned that the continuing rise of foreclosures in Kern County could be fraud related, [the County Board of] Supervisors unanimously adopted a resolution establishing a trust fund to investigate and prosecute real estate fraud. The plan calls for imposing a $2 fee on certain public real estate filingswith the County Recorder's office. It is expected it would raise between $230,000 and $280,000 a year.

A mortgage fraud battle in Kern County appears to be currently fought, not by local law enforcement against the bad guys, but by State Senator Dean Florez and local real estate appraiser Gary Crabtree (who say that local mortgage fraud is running rampant) against Kern County District Attorney Ed Jagels (who believes local mortgage fraud is practically non-existent). While Jagels is reported to be in favor of establishing the trust fund from which money can be drawn as fraud cases are investigated and filed, he recently expressed his position against forming a specialized real estate fraud-fighting unit within his office, reportedly saying "There is nothing more poisonous to morale [among prosecutors] than having what is in effect a grant-funded unit with nothing to do." For more, see County creates trust fund to crack down on real estate fraud.

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