Industry News

FBI: Residential real estate loan fraud to hit $653M in 2005

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Residential mortgage fraud will cost communities nationwide an estimated $653 million in 2005, with commercial mortgage fraud costing an estimated $812 million, an FBI agent said at a Colorado mortgage fraud summit Wednesday, the Pueblo Chieftain reported. FBI agent Dan Bradley of Colorado Springs, whose coverage area includes Southern Colorado, addressed more than 500 people Wednesday at a statewide seminar on mortgage fraud in Pueblo, according to the Pueblo Chieftain. Regulating the mortgage industry is a good first step toward curbing mortgage fraud but doesn't solve the problem, the agent said, according to the Chieftain. There are generally two types of fraud cases, Bradley said, with the first involving borrowers who intend to live in their houses. These types of fraud represent about 20 percent of cases and are generally low on the FBI's list of priorities, though he said the FBI is still interested in them, the Chieftain reported. The second group of mortgage fraud cases...