Reports by financial institutions of incidents of suspected mortgage fraud climbed 13 percent during the six months ending March 31 compared to the same period a year ago, the FBI said in releasing its annual report on mortgage fraud.Some of the rise in suspicious activity reports (SARs) filed with the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) is connected to loans that were originated years ago.The discovery of mortgage fraud through mortgage industry loan review processes, quality control measures, regulatory and industry referrals, and consumer complaints can lag by two years or more, the FBI said.The FBI and FinCEN also warned of ongoing mortgage fraud connected to foreclosure rescue scams, short sales, homebuyer tax credits, and "builder bailout" schemes in which builders unload excess inventory by inflating property values and refunding bogus downpayments to buyers.In releasing its first analysis of foreclosure-rescue schemes today, FinC...
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