Friday, 26 August 2011

Mortgage Fraud Report Indicates Consistent Crime Rates in 2010

The FBI has released its 2010 mortgage fraud report based on data from the FBI, as well as federal state and local law enforcement. According to the report, mortgage fraud in 2010 continued at more or less the same levels as in 2009. California had the highest levels of mortgage fraud last year.
Among the findings in the report:

• Part of the reason for this consistency in mortgage fraud crime rates is that these crimes tend to be resilient, and can be adapted to all kinds of economic situations.
• Perpetrators of mortgage fraud include a broad range of people including accountants, real estate agents, land developers, mortgage brokers (both licensed and registered as well as non-licensed and nonregistered), appraisers, underwriters, builders, and investors.
• California had the highest rates of mortgage fraud in 2010. Following California were Florida, New York, Illinois, Nevada, Arizona, Michigan, Texas, Georgia, Maryland and New Jersey.
• The demographic markets that were affected by mortgage fraud in 2010 were the same as the previous year.
• The most popular kinds of mortgage fraud schemes, as reported by law enforcement agencies in 2010, were those that involved loan origination, equity skimming, foreclosure rescue, illegal flipping of property, and commercial loan and builder bailout schemes. The report makes specific mention about the challenges posed by reverse mortgage fraud, loan modification fraud and home equity lines of credit.

The FBI has continued to dedicate substantial resources to cracking down on mortgage fraud in 2010. In June last year, the Department of Justice announced a major crackdown on mortgage fraud under the name, “Operation Stolen Dreams,” which Los Angeles criminal defense lawyers believe was the largest such corrective enforcement against mortgage fraud.

The FBI believes that due to the current depressed housing market which is expected to stay low for the rest of 2011, rates of mortgage fraud will continue to remain high.

3 comments:

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  2. It really is amazing how much fraud there is in the mortgage and reverse mortgages Boca Raton industries... they're pretty much a huge honeypot for criminals or so it would seem.

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