Mortgage Fraud Remains Rampant, FBI Says
About $10 billion in originated loans last year contained fraudulent information, according to CoreLogic.
“The current and continuing depressed housing market will likely remain an attractive environment for mortgage fraud perpetrators who will continue to seek new methods to circumvent loopholes and gaps in the mortgage lending market,” said a new report from the Federal Bureau of Investigation (FBI) that cited CoreLogic’s figures.
The most prevalent mortgage fraud schemes include fraud involving loan origination, foreclosure-rescue initiatives, short sales, property flipping, equity skimming, builder bailouts, and reverse mortgages, the FBI says. Additionally, it’s finding many of the mortgage fraud schemes have a strong connection to organized crime….read more