Chairman Cleaver, Rep. Evans Introduce Legislation to Combat Deed Fraud, Protect Homeowners

Press Release

Today, U.S. Representative Emanuel Cleaver, II (D-MO), Chairman of the Financial Services Subcommittee on Housing, Community Development, and Insurance, along with Rep. Dwight Evans (D-PA), introduced H.R. 9192, the Good Documentation and Enforcement of Estate Deeds (Good DEED) Act. The Good DEED Act would establish the first federal definition of deed fraud, a fraudulent scheme in which criminals steal real property from their victims, and create a federal grant program to assist local law enforcement with tracking and combatting deed fraud and to support legal services for victims, strengthen protections for homeowners against fraudulent notarizations, increase penalties for criminals who participate in the practice, and require the FBI to include data on deed fraud in the Uniform Crime Reporting program.

"Following my announcement with Jackson County Executive White to alert Missourians of the dangers of deed fraud, we have heard from additional members of our community that have been impacted by this contemptible practice. Today, as we continue our efforts to raise awareness, I'm proud to introduce federal legislation that would help to crack down on these illicit scams and protect hardworking homeowners from either losing their home or their hard-earned paychecks on costly legal fees," said Chairman Cleaver. "While this will not solve the problem overnight, the Good DEED Act is critical to understanding the scope of the problem nationally and an important step toward protecting law-abiding Americans from getting ensnared in one of these nefarious schemes."

Congressman Dwight Evans (PA-03) said, "Philadelphia has a huge problem with tangled titles, all too often caused by deed fraud, so I'm proud to co-lead the Good DEED Act. Tangled titles prevent families -- including many African American families -- from accumulating and transferring generational wealth, or even receiving help fixing up their homes."

"Bringing this crime to the forefront has empowered our residents to be informed, alert and proactive. Now it's time to take prevention a step further," said Jackson County Executive Frank White, Jr. "The Good DEED Act legislation provides the framework to help combat this financially and emotionally demoralizing crime from happening in our community and makes available critical assistance to homeowners who unfortunately fall victim. I give my full support to Congressmen Cleaver and Evans on this thought-leading initiative and urge everyone remain vigilant about this dangerous scam."

"The Good DEED Act brings federal attention to the widespread problem of "tangled title.' Tangled title occurs when someone has ownership rights to a house, but the deed is not in the person's name," said Judy Berkman, Senior Counsel, Regional Housing Legal Services. "Many tangled title cases involve "heir' property. In gentrifying neighborhoods, fraudsters "steal' these properties by forging deeds and other legal documents. The Good DEED Act will provide successful grant applicants with funding to implement infrastructure improvements to prevent and prosecute deed fraud. It will also provide free legal services to income-eligible people to resolve their tangled title cases allowing them to have the benefits of home ownership and build wealth."

"We know firsthand in Philadelphia the damage that deed fraud can do to families and their generational wealth, and we're thrilled that the Good DEED Act would create a federal source of funding to support the fight against deed fraud nationwide," said James P. Leonard, Commissioner of Records for the City of Philadelphia.

Last month, Chairman Cleaver and Jackson County Executive Frank White, Jr. sounded the alarm on scams being perpetrated against property owners in Jackson County, where forged, false and/or fraudulently induced deeds are recorded against properties in the County without the knowledge or consent of the owner. Included in the alert was information on how to identify if one has fallen victim to deed fraud and the steps Jackson County residents can take to protect themselves and/or receive assistance from local authorities. However, there are additional reports of deed fraud occurring throughout the United States.

The Good DEED Act would make critical reforms to combat deed fraud nationally by:

Establishing a $10 million annual grant program administered by the U.S. Department of Housing and Urban Development (HUD) to fund applications that assist in prevention, detection, investigation, and prosecution of deed fraud;
Mandating that States receiving funding amend State laws to require identifiable information of individuals notarizing and filing deeds, such as fingerprints, photographs, and/or video of filers;
Requiring HUD to report to Congress on activities funded under the grant program and to identify best practices in reducing deed fraud;
Establishing the first federal definition of deed fraud and directing the U.S. Sentencing Commission to promulgate guidelines or amend existing guidelines to provide sentencing enhancements for offenses involving deed fraud; and
Requiring the Federal Bureau of Investigation (FBI) to add a category for deed fraud to the Uniform Crime Reporting program.

"When Congress returns to session next month, I intend to push for quick action on the Good DEED Act so that we can immediately strengthen protections and begin tracking where and how these schemes are most frequently executed," said Chairman Cleaver. "In the meantime, I highly encourage Missouri and other states to begin working on updating their own laws to eradicate these scams before they become even more prevalent and harmful to members of our communities."

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