Industry NewsMortgage

Fannie, Freddie repurchase demands reveal fraud

3 of 4 mortgage fraud reports involve pre-2008 activity
Published on Dec 15, 2010

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by CareyBot

Demands by Fannie Mae and Freddie Mac that lenders repurchase loans made during the housing boom are driving an increase in reports of suspected mortgage fraud, government regulators say -- although short-sale "flopping" and fraud associated with loan modifications appear to be a continuing problem on newer loans.

Two reports issued by the Financial Crimes Enforcement Network (FinCEN) show lenders and regulators filed 35,135 suspicious activity reports (SARs) related to mortgage fraud in the first half of 2010, up 7 percent from a year before.

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