Associated Press A bill planned for the 2006 legislative session would allow mortgage fraud to be prosecuted under Utah’s anti-racketeering laws. Different types of mortgage fraud are prosecuted under different sections of the state’s criminal code. Classifying the offense as racketeering would serve as a deterrent because perpetrators would likely face stiffer penalties if convicted, said the sponsor, State Rep. Paul Ray, R-Clinton. Mortgage fraud fits the legal definition of racketeering because it can involve a conspiracy among several people, including homebuyers, builders, real estate agents and lenders, said Ray, who is a commercial lending officer for Sterling Mortgage in Salt Lake City. Ray’s bill would bring attention to mortgage fraud, said Michael Blackburn, a spokesman for Perfect Home Living, a Centerville organization that works with law enforcement agencies to catch people involved in mortgage fraud. “The law is really lenient when it comes to mortgage fraud criminals,” he said. Ray’s bill also would ask the state attorney general to hire a special prosecutor and possibly an investigator at a cost of about $150,000 a year to specifically handle mortgage fraud cases. “Mortgage fraud is so complicated that it’s better to get one person to prosecute it,” Ray said. The FBI in Salt Lake City has more than 260 mortgage fraud cases awaiting prosecution, he said. In 2004, there were 255 complaints of mortgage fraud in Utah that involved funds from federally insured lending institutions, representing losses of about $11.1 million, according to the FBI. Ray’s bill also would authorize the state to prosecute violators of the federal Truth in Lending Act. The act is designed to protect borrowers and requires lenders to disclose payment schedules, finance charges, prepayment and late payment penalties, and other information.