High-Fraud States also Have High Foreclosures
In MortgageDaily.com's latest mortgage fraud index, California had the worst state index and the highest dollar amount of fraudulent loans. California also had the most foreclosures during the period. In fact, seven of the 10 states with the highest amount of mortgage fraud were also among the 10 states with the most foreclosures.

California's FraudBlogger Index was 283 in the second quarter, more than 157 in the first quarter and higher than any other state.

The index reflects both the number of active mortgage fraud cases and the estimated dollar volume during a given period.
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Mortgage Fraud Cases Jump 55%
A big surge in the number of active mortgage fraud cases helped push the Second Quarter 2010 FraudBlogger.com Index higher. The heavier caseload follows increased efforts by the Obama administration to prosecute mortgage crimes.

Risk of Mortgage Fraud Subsides
U.S. mortgage loans are less likely to involve mortgage fraud than they were three months ago, according to a quarterly index released Tuesday. But the risk of identity fraud was worse.

WR Starkey's New CEO Speaks Out
WR Starkey Mortgage LLP has named a new chief executive officer who sees this week's settlement with North Carolina as having made the lender a "better, stronger company." Th state claims employees "placed inaccurate information on consumers' credit reports to boost their ability to qualify for loans."

Fast Growing Fraud Detection Firm Adding 200
Rapid growth at a technology firm that helps lenders identify potential mortgage fraud has it expanding by 200 employees in Florida. The company has doubled in size each of the past three years and expects to do so again this year.

Settlement Includes CEO's Exit
A settlement with North Carolina will cost a Texas-based mortgage firm more than $4 million and the resignation of its chief executive officer. The company is accused of playing a role in a scheme to sell manufactured homes at inflated prices.

Third Parties Increase Due Diligence
A new government report on mortgage fraud indicates that post-origination reviews by parties other than the lender have grown. More than two-thirds of mortgage fraud reports were filed by institutions overseen by one federal regulator.

Mortgage Fraud Helps Topple MN Bank
Mortgage fraud by a builder of upscale homes helped bring down a Minnesota bank on Friday.

Wholesaler Investigated for Not Disclosing Litigation
While the Nationwide Mortgage Licensing System has aided states in their regulation of the mortgage industry, some states still lack adequate resources to thoroughly investigate license applications. One example is a New Jersey wholesale lender that was able to obtain a Connecticut license without disclosing that it was facing mortgage fraud litigation -- even though such disclosures are required in that state.

Borrowers Win Discrimination Lawsuit
A judgment has been entered against employees and executives of a Colorado mortgage firm who are accused of targeting borrowers who spoke little or no English in a scheme where home values were allegedly inflated.