Mortgage Fraud is on the Rise

The Mortgage Bankers Association of America recently reported information gathered using FBI and private industry data indicating that mortgage fraud of all types is on the rise in across the country.  Currently California and Florida have leap-frogged to the top of the list of the states most mired in the fraud. 

This fraudulent activity consists of lying about income, assets, employment details, taxes, etc.  It’s anticipated that loan fraud will continue to rise steadily in the wake of the sub-prime melt down.  Mortgage payments for many Americans are rising as their ARM loans begin to adjust.  At the same time that payments are going up, lenders are making it harder and harder to borrow their money.  The combination of these events is likely to encourage many would-be borrowers and loan officers to falsify information in order to push tough loans through.  Because of the projected rise in mortgage fraud, the FBI is planning to make this area of investigation and prosecution a major priority in coming months.