Mortgage fraud reports up 42% in 2007
In the last year there were 52,868 reports of fraud in mortgage applications. This is a rise of 42% from the previous year. So, the lenders concern over it and their tightening of the rules are not matters of surprise.
The Treasury Department’s Financial Crimes Enforcement Network revealed the information recently. According to the network, last year such fraud number was 37,313.
It has become the third -most common suspicious activity. This is not a very good news for the lenders. Because of the stringent rules in an effort to cut on such fraud cases, the borrowers are facing problems .
The common types of mortgage frauds are -
- Misrepresentation of income and assets
- Forged documents
- Occupancy fraud
- Inflated appraisals
- Misrepresentation of the borrower’s intent to occupy a house as a primary residence
The financial institutions and the lenders are becoming more adept at finding out suspicious activities related to mortgage fraud. Mortgage brokers may also have a share in the whole situation. Many of them do not verify the information provided by the applicants. If they do the verification correctly, then fraud cases may be further reduced.
Mortgage Asset Research Institute earlier reported increasing numbers of mortgage fraud. According to their report Florida is leading the way for the second consecutive year. Nevada, Michigan, California, Utah and Georgia are following the trail. Fighting mortgage ,may not be so easy until all the parties involved in the mortgage process do their part to stop it.
