2009 Mortgage Fraud Index Jumps
The number of mortgage fraud cases increased last year, though the dollar amount held steady, according to MortgageDaily.com's fourth-quarter 2009 mortgage fraud index. Activity was worst in Florida and Nevada.

During 2009, the FraudBlogger Index climbed to 1677 from the previous year's 1488. The index reflects the number and dollar amount of mortgage fraud cases with reported activity during the period.

Despite the increase in the index, the dollar amount of the cases tracked eased slightly from 2008 to $5.3 billion last year.
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HUD Rampage Continues
Following a bloodbath last week when the U.S. Department of Housing and Urban Development announced actions against more than 200 mortgagees, the agency reported five more firms that faced further actions. Concerns about mortgage fraud was an issue at one of the companies.

Mortgage Fraud Growth Slows
New government data indicate that mortgage fraud activity is beginning to ease.

3 Face Sentences for Mortgage Crimes A former mortgage broker who stole more than $100,000 from a reverse mortgage borrower has been sentenced to six years in prison despite showing up at his sentencing with a $50,000 check for his victim. In another case, a Texas woman was sentenced for cleverly diverting proceeds from loan closings to her personal accounts. A third case has a former bank executive admitting that he cooked the books and facing sentencing along with two other related defendants who are accused of mortgage fraud.

Criminal Mortgage Actions
A Colorado firm and its top originator are accused of deceiving prospective borrowers and committing mortgage fraud, while a Pennsylvania woman is accused of stealing appraisal fees from her employer. A New York attorney has joined a law firm where he hopes to help white collar defendants.

Investor Lawsuits Include Criminal Actions
Among several investor lawsuits to recently see legal action were cases where criminal charges were filed. In one case, the defendants are also accused of more than $100 million in mortgage fraud.

Foreclosure Scams Use Mortgage Fraud
In a typical foreclosure rescue scheme, delinquent borrowers are advised to convey title to an investor located by the foreclosure rescue firm. But instead of rescuing the borrowers, the firms line up fake borrowers with fraudulent documentation and extract all available equity -- leaving the borrowers still facing foreclosure. A federal and state initiative has been launched to stop such schemes.

FHA Funding Approved
U.S. legislators in one chamber approved a bill that will provide funding for technology at the U.S. Department of Housing and Urban Development. The bill also includes funding for the prevention of mortgage fraud.

Hospital Infected With Mortgage Fraud
An underwriter on a psychiatric hospital loan insured by the U.S. Department of Housing and Urban Development has settled allegations that he committed mortgage fraud.

Mortgage Banker Abuses Warehouse Line
Instead of funding his loan originations, a Louisiana mortgage banker had other plans for his warehouse line-of-credit.