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| A new government report indicates mortgage fraud increased last and is headed even higher.
During fiscal 2008 — which ended on Sept. 30 — 63,713 mortgage fraud Suspicious Activity Reports were referred to law enforcement, the Federal Bureau of Investigation said today in its 2008 Mortgage Fraud Report. The number of SARs jumped 36 percent from 46,717 in fiscal 2007. From Oct. 1, 2008, through March 31, 2009, 33,291 SARs were filed — suggesting mortgage fraud reports will top 70,000 during fiscal 2009. “The depressed economy witnessed during 2008 is generally expected to persist at least through the end of 2009 and possibly longer, continuing to provide a favorable environment for expanded mortgage fraud activity,” the FBI said. “Industry personnel will feel pressure to find alternative methods to match the income they enjoyed during the real estate boom years. “Many will be willing to conduct criminal activities to achieve this goal.” By market, Los Angeles saw 9,971 SARs filed in fiscal 2008 — more than any other area. Miami was next with 5,155 reports, then San Francisco’s 3,427, Chicago’s 3,301 and Sacramento’s 3,075. At financial institutions that reported losses tied to mortgage fraud in fiscal 2008, total losses were $1.4 billion — 83 percent higher than the previous year. During the first-half 2009, reported losses of $1.2 billion exceeded the same period during fiscal 2008 by $0.2 billion. The FBI said 63 percent of all 2008’s approximately 1,643 mortgage fraud cases, or 1,035 cases, involved more than $1 million. The West had more pending investigations into mortgage fraud than any other region. California had more pending cases than any other state: 230. Next was Florida with 130 cases, then Texas at 126. New York had 99 pending cases, while Michigan had 89 and Illinois had 87. Pending residential loan investigations by the U.S. Department of Housing and Urban Development’s Office of Inspector General were 451 in fiscal 2008, declining from 466 the prior year. |
