Mortgage Fraud Statistics

The Federal Bureau of Investigation (FBI) is responsible for investigating cases of home mortgage fraud. The number of cases has been growing since the housing and home mortgage crisis started.

Mortgage Fraud Statistics

Estimated losses per year: $4 to $6 billion
2008: 63,173 mortgage fraud suspicious activity reports (SAR)
2009 (through 4/30/09): 40,901 SAR’s
2008: 574 indictments with 354 convictions

Top Ten States with Mortgage Fraud Problems

Rhode Island
Florida
Illinois
Georgia
Maryland
New York
Michigan
California
Missouri
Colorado

The FBI states that they investigate “... mortgage fraud in two distinct areas: fraud for profit and fraud for housing.

Fraud for profit is sometimes referred to as ‘Industry Insider Fraud,’ and the motive is to revolve equity, falsely inflate the value of the property, or issue loans based on fictitious properties. Based on existing investigations and mortgage fraud reporting, 80 % of all reported fraud losses involve collaboration or collusion by industry insiders.

Fraud for housing represents illegal actions perpetrated solely by the borrower. The simple motive behind this fraud is to acquire and maintain ownership of a house under false pretenses. This type of fraud is typified by a borrower who makes misrepresentations regarding his income or employment history to qualify for a loan.”

Real estate law is complicated and can vary from state to state. Thus, it is important to speak with an attorney who specializes in real estate law before making any hasty decisions about your mortgage loan. Whether you are a homeowner, landlord, or tenant, Whocanisue.com can help you find an experienced foreclosure attorney in your area.

For more information about mortgage fraud, read Mortgage Rescue Fraud.