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Minnesota Emerges as Mortgage Fraud Hot Spot


Minnesota Emerges as Mortgage Fraud Hot Spot

DALLAS — (Sept. 12, 2011) /PRNewswire/ Minnesota has emerged as a problem area for mortgage fraud and helped lift national activity from the first quarter. But a national improvement from a year earlier was attributable to another three states.

The Second-Quarter 2011 Mortgage Fraud Index from came in at 1261, an increase of 27 percent from the first quarter.

The index is based on criminal and civil cases where defendants are accused of trying to deceive real estate lenders into making credit decisions using fraudulent documentation or property appraisals with false values. Case tracking is maintained by the mortgage fraud blog

Index by Quarter

Period Index Amount # Cases
Q2 2011 1261 $1,587,573,586 194
Q1 2011 990 $1,247,615,165 150
Q2 2010 1699 $2,248,657,052 266

Oregon, Utah, Iowa and Colorado saw the biggest quarter-over-quarter increases in their indices.

The U.S. index fell more than a quarter from a year earlier. Oregon had a 78 percent decline, the most significant, while Utah had the biggest jump from a year earlier.

The Minnesota Mortgage Fraud Index, which rose 15 percent from the same period last year, was at its highest level during any quarter based on more than five years of data.

Top States by Index

Florida 117
Minnesota 107
Ohio 103
California 93
Pennsylvania 87

The dollar volume of U.S. cases tracked worked out to $340 million more than what was tracked the first-three months of 2011. A big chunk of this growth came from Minnesota, which saw about $161 million more in cases.

Compared to the second quarter of last year, dollar volume was nationally down around $661 million. California saw a $300 million year-over-year improvement, while Michigan was down $218 and Pennsylvania fell $198 million.

The annual improvement might have been better had it not been for states like North Carolina, where volume rose by $67 million, and New York, which had around $72 million more in cases.

Top States by Total Amount

Minnesota $184,715,000
Florida $184,009,434
Arizona $162,588,400
New York $152,487,775
California $135,719,882

Full Second-Quarter 2011 Mortgage Fraud Index report:

Mortgage Fraud News:

Mortgage fraud Blog:

Founded in 1998, is a dominant online source of news, statistics and analysis for the mortgage industry. Visit us online at

Holly Himelright


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