Mortgage Fraud Climbs 30 Percent
 

Source - Inman News (05/17/07)

A new report from the Mortgage Asset Research Institute reveals a 30-percent jump in fraudulent mortgages last year, with the increase likely related to a surge in delinquencies and defaults that has helped to uncover instances of fraud. Falsified job histories and inflated income were most common in loans written last year under false pretenses; but fraudulent tax statements, appraisals, closing documents and credit reports were also recorded. Leading the pack for the most fraudulent mortgages are Florida, California, Michigan, Georgia, Utah, New York, Illinois, Minnesota, Colorado and Nevada. In response, the Mortgage Bankers Association is urging Congress to earmark $31.25 million over five years to hire 30 FBI investigators and two prosecutors and $750,000 to create task forces to examine conditions in markets with high levels of fraud. According to MBA President and CEO Jonathan Kempner, the report does not include independent mortgage lenders--only federally insured lenders--so the actual number of fraudulent loans is probably much higher.

Those who are not playing by the rules look out! The L.O. can be fined and jailed for Mortgage Fraud!