A multi-agency task force to address the problem of mortgage fraud has been established in Los Angeles.

Salvador Hernandez, assistant director in charge of the FBI in Los Angeles, announced the SCAM (Southern CAlifornia Mortgage) Task Force will be the most recent of more than 40 similar groups across the country.

With the anticipated upsurge in mortgage fraud cases, the FBI has employed strategies to proactively address the problem, including creation of multiagency task forces. In L.A., nine federal agencies have partnered to form squads of agents to investigate various types of fraud in connection with mortgage lending and the housing market, all of which have an effect on the nation's economy.

The agencies participating are the United States Attorney's Office- Central District of California; IRS- Criminal Investigation; the U.S. Postal Inspection Service; the Small Business Administration- Office of Inspector General; the Social Security Administration- Office of Inspector General; the United States Attorney's Office; the U.S. Trustee Program; the U.S. Department of Housing and Urban Development- Office of General Inspector; the Department of Veterans Affairs; and the Federal Deposit Insurance Corporation- Office of Inspector General.

The task force will investigate mortgage fraud in two areas known as "fraud for profit" and "fraud for housing."

Fraud for profit, or "industryinsider" fraud, involves skimming of equity, falsely inflating the value of the property or the issuance of loans based on fictitious properties. Based on existing investigations and mortgage fraud reporting, about 80 percent of all reported fraud losses involve collaboration or collusion by industry insiders.

Fraud for housing schemes involve illegal actions perpetrated by the borrower. The motive is to acquire and maintain ownership of a house under false pretenses. The borrower typically makes false representations regarding his income or employment history to qualify for a loan.

To encourage members of the public to report illegal activity related to mortgages, the SCAM Task Force has established a tollfree tip line at (866) 959-SCAM (7226). Online complaints may be sent to SCAM@ic.fbi.gov.

The FBI and its partners offer the following tips to potential and existing homeowners to protect against mortgage fraud:

•Get referrals for real estate and mortgage professionals. Check the licenses of the industry professionals with state, county or city regulatory agencies.

• If it sounds too good to be true, it probably is. An outrageous promise of extraordinary profit in a short period of time should send a warning signal.

•Be wary of strangers and unsolicited contacts, as well as high-pressure sales techniques.

•Look at written information to include recent comparable sales in the area and other documents such as tax assessments to verify the value of the property.

•Understand what you're signing and agreeing to. If you don't understand something, reread the documents or seek assistance from an attorney.

•Make sure the name on the application matches the name on your identification.

•Review the title history to determine if the property has been sold multiple times within a short period. It could mean that the property has been "flipped" and the value falsely inflated.

•Know and understand the terms of the mortgage. Check your information against the information in the loan documents to ensure they're accurate and complete.

•Never sign any loan documents that contain blanks.

For more information, visit www.fbi.gov.