Possible mortgage fraud jumped in first half of 2010
12/16/2010
By Credit.com Staff
The number of suspicious activity reports indicating mortgage loan fraud jumped 7 percent in the first six months of 2010, according to two reports from the Financial Crimes Enforcement Network, a government agency. The total number of cases rose to 35,135, up from 32,926 in the first half of last year.
The increase can partially be attributed to an increased scrutiny of older home loans as banks make more attempts to foreclose on properties, the report said. In the first quarter of 2010, incidents of possible fraud that occurred two years prior to the filing accounted for 78 percent of all cases, up from 44 percent in the same period in 2009. In particular, the vast majority were found to be originated between 2006 and 2008.
Banks have attempted to foreclose on millions of homeowners in recent months, sparking controversy over their review process.
