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Paul Kiesel
Paul Kiesel
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FBI Releases Mortgage Fraud Report

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The FBI released its Mortgage Fraud Report today, and it presents a startling statistic: mortgage fraud increased 500% in 2007 from 2003 and is likely to be 10 times worse than 2003 by the end of this year. The report thoroughly lays out all the different types of mortgage fraud that have taken place since 2003 (short sell scam, appraisal fraud, etc.), the year subprime loans were introduced into the mortgage marketplace, and the increase of fraud related to subprime loans.

The report doesn’t foresee a declivitous trend in mortgage fraud anytime soon. Instead, the FBI expects that mortgage fraud will continue to increase, even though more people are becoming aware of the problem.

Arizona, California, Florida and Nevada, states where TILA disclosure fraud has been a serious problem over the last two years, are considered to be states that rank at the top of the “Mortgage Fraud” list. It should also be noted that each of these four states have cities that comprise the entire top 10 housing markets facing steep losses over the past year and likely in the year ahead.

Click to go to: Mortgage Fraud Report.