From MortgageNewsDaily.com, here's their "quick â€˜rule-of-thumbâ€™ on who to contact: If you suspect you are a victim of mortgage fraud, contact the local FBI office; if you suspect or need to report predatory lending practices or other abusive-types of lending, contact your state Attorney Generalâ€™s office; if you suspect or need to report mortgage scams by a real estate broker or appraiser, contact the stateâ€™s real estate licensing board or appraisal licensing board. The Better Business Bureau is also an excellent resource if you think you are a victim of fraud. These and many other sources of help are listed below."
And, here's a link to several resources regarding reporting frauds or all types in Michigan:
The FBI investigates mortgage fraud. They are very active here in SE Michigan unfortunately. People have the perception that this is just a problem in certain areas, but no area is exempt from mortgage fraud right now. Unfortunately, those homes turn into foreclosures and impact the neighbors. You are doing the right thing by reporting it.
Mortgage Loan Fraud a report http://www.fincen.gov/MortgageLoanFraud.pdf
Predatory Lending information from ABA: http://www.aba.com/Consumer+Connection/CNC_pred1.htm
Preventing, Detecting and reporting mortgage loan fraud