Mortgage Fraud Worsens
Reports of mortgage fraud jumped from last year, a new analysis indicates. Nearly half of all fraud took place in three states that also have some of the highest levels of foreclosures.

Mortgage fraud activity jumped 45 percent during the second quarter from a year earlier, according to the Quarterly Fraud Report released today by the Mortgage Asset Research Institute.

The second-quarter increase compares to a 42 percent increase reported in the first quarter.
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Riskiest Mortgage Markets
Mortgage loans secured by properties in Arizona, California and Florida continue to be among the riskiest, a new report today said. But despite home-price depreciation and a high risk of mortgage fraud, one Ohio market ranked as the second least risky mortgage market.

FHA Fraud Costs Canadian Bank Over $10 Million
The Royal Bank of Canada's U.S. mortgage unit has agreed to pay more than $10 million to settle charges of mortgage fraud on loans insured by the Federal Housing Administration. The unit is being shut down.

DLJ Buys $50 Million in Bogus Loans
In a lawsuit filed earlier this month, DLJ Mortgage Capital Inc. claims it was defrauded on $50 million in loans. The bad loans were not uncovered for several years because the defendants allegedly made payments on the fake loans. The mortgage banker who served as the ringleader is currently in prison for bribing a U.S. congressman.

Brokers Settle Deceptive Advertising Claims
Five mortgage brokers operating in Colorado have settled allegations of deceptive advertising. Another broker settled charges of mortgage fraud.

Mortgage Rules and Regulations
Mortgage brokers and lenders will have more time to comply with a new Red Flags Rule designed to reduce mortgage fraud, though a number of services have emerged to help ensure compliance. Two companies are touting technology that helps wholesale and retail lenders comply with requirements under a new appraisal ordering code.

Mortgage Fraud Falls
Quarterly mortgage fraud activity dropped. Some of the states with the most fraud activity were also the states with the most foreclosures.

Illinois Sheriff to Resume Foreclosure Evictions
A controversial move by a county sheriff in Illinois to halt all foreclosure evictions has been resolved. But servicers will face more mortgage fraud scrutiny and have to wait as long as 120 days for non-borrower tenants to move out.

Florida Leads Federal Fraud Prosecutions
A report from Syracuse University found that federal mortgage fraud prosecutions this year have been concentrated in Florida.

Appraisers Blame Countrywide for Lost Income
A group of appraisers has filed a class-action lawsuit against Countrywide Financial Corp. claiming the mortgage giant was responsible for damaging the business of thousands of appraisers.