Magazine article Mortgage Banking

Suspected Mortgage Loan Fraud Rose by 35 Percent in 2005

Magazine article Mortgage Banking

Suspected Mortgage Loan Fraud Rose by 35 Percent in 2005

Article excerpt

Even as the housing market slows, suspected mortgage loan fraud in the United States rose 35 percent in the last year, according to an assessment released by the Financial Crimes Enforcement Network (FinCEN).

FinCEN, an agency of the Treasury Department, conducted the assessment, which was based on an analysis of Suspicious Activity Reports (SARs) regarding suspected mortgage loan fraud.

One explanation of the increase in SARs reporting is increased awareness of the potential for fraud, FinCEN noted. Between 1997 and 2005, the number of SARs pertaining to mortgage loan fraud increased 1,411 percent, said FinCEN.

"Many areas of the United States saw double-digit growth in real estate volumes during 2003 and 2004. At the same time, mortgage loan interest rates were at a historic low," said the FinCEN assessment. "Although growth in the housing industry appears to be slowing in the first quarter of 2006, opportunities for fraud are still present."

Many of the SARs reviewed included more than one characterization of suspicious activity in addition to mortgage fraud. "False statement" was the most-reported activity in conjunction with mortgage loan fraud, while identity theft was the fastest-growing secondary characterization reported, said FinCEN. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.