FBI Report: Mortgage Fraud Increased in 2008
According to a new FBI report , mortgage fraud increased considerably in 2008. Relying on Suspicious Activity Reports from financial institutions, the report cited a 36 percent increase in mortgage fraud compared to 2007, with losses of over $1.4 billion. During the first six months of 2009, losses already exceed all of 2008 by $208 million. The report links the increase in mortgage fraud reports to a declining economy and depreciating home values.
The FBI report includes a list of common mortgage scams, including fraudulent short sales, bankruptcy filings, arson to collect insurance, and reverse mortgage, refinancing and modification related schemes.
Not all states experienced an increase in mortgage fraud . The Seattlepi.com, reported that Washington was one few states that experienced a decline in mortgage fraud reports during 2008. On the other end of spectrum, the report lists California and Florida as states with the highest incident of mortgage fraud reporting.
