Industry NewsMortgage

Report: Mortgage fraud up 31% in 2007

Falling home prices unmasking application fraud

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

The number of suspicious activity reports related to mortgage fraud increased 31 percent in 2007 compared to the year before, to 46,717, with 60 percent of those incidents involving false claims on loan applications such as employment history and claimed income. That's according to an annual report on mortgage fraud by the Mortgage Asset Research Institute (MARI), which said Florida and Nevada led the nation in the rate of suspected mortgage fraud cases, followed by Michigan, California, Utah, Georgia, Virginia, Illinois, New York and Minnesota. Colorado showed the greatest improvement in this year's report, falling from ninth place last year to 17th, and leaving MARI's list of the top-10 states for mortgage fraud for the first time in five years. Minnesota also fell from fifth place in 2006 to 10th in 2007. Virginia made its first appearance on the top-10 list, at seventh, while Nevada moved from sixth place to second. Utah, which had dropped out of the top 10 in 2006...