The number of pending investgations into cases of suspected mortgage fraud increased by 12% last year over 2009 numbers, according to the FBI's recently released annual report on mortgage fraud. The report also notes that data collected from Core Logic indicates that more than $10 billion in total loans were closed last year where fraudulent application data is suspected of being used.
The report, just like last year's, concludes that mortgage fraud remains widespread due to the depressed housing market and overall economy. The most common fraud schemes involve the falsification of application data used to qualify borrowers, and inflated appraisals used to increase prices.
The FBI report says that mortgage fraud remains prevelent due to the potential for high profits and the low risk of being caught. They also point out that licensed brokers, loan officers, appraisers and real estate professionals in many cases use their knowledge of the system to find vulnerable areas where they themselves can commit the fraud.
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Written and Published by: VanEd