The Real Estate Bloggers

Posted: 13 Jun 2010 04:44 AM PDT

Moneyhousescale According to the latest data from the Federal Bureau of Investigations these 10 cities were the leaders in mortgage fraud in the country.

Typically the mortgage fraud were misstatements on mortgage applications that lead to loans being improperly made.

Mortgage fraud is one of the contributing factors to the housing bubble and the recession we are now in.

Top 10 Cities For Mortgage Fraud

Los Angeles
Miami
San Francisco
Chicago
Sacramento
New York
Tampa
Detroit
Minneapolis
Atlanta

via the Financial Times (subscription required)

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Top 10 Cities For Mortgage Fraud

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Mortgage Fraud Higher in 2009 than 2008?

Posted: 13 Jun 2010 04:38 AM PDT

Thief2 According to the FBI, mortgage fraud is still on the increase. The Federal Bureau of Investigations has had 23 regional mortgage fraud offices open since 2008 and have found that mortgage fraud is not just a problem from the housing bubble.

Could it be that the tighter requirements for loans combined with Federal tax incentives is driving the increase in fraudulent activity, or is it that we are now looking for it so the feds are finding more fraud.

Either way, the news is not great for the industry. And to top it off, reports are that there will be a major roundup of people involved in mortgage fraud this week. Last year when the report was released they arrested 400 people in “Operation Malicious Mortgage”.

As of June 2009, suspicious mortgage-related activity for the year was on track to exceed 70,000 cases, a 10 per cent increase over 2008 levels, according to preliminary FBI estimates. Mortgage fraud-related losses totalled $1.4bn in 2008, an 83.4 per cent rise over the previous year.

In the first six months of 2009, losses exceeded levels for the same period in 2008 by $208m. California and Florida, two states that played a key role in the subprime meltdown, had the most mortgage fraud in 2008, according to the latest data. Los Angeles, Miami, San Francisco, Chicago, Sacramento, New York, Tampa, Detroit, Minneapolis and Atlanta were the top cities in descending order for mortgage fraud. via the Financial Times (subscription required)

Thanks for reading this post. If you would like to see more articles like this, please come visit The Real Estate Bloggers. where it was originally published.

Mortgage Fraud Higher in 2009 than 2008?