Top 10 Mortgage Fraud States
Regardless of the efforts of policy makers to control these activities, mortgage fraud is still on the rise. However, CoreLogic’s senior vice president of Fraud Analytics, Tim Grace, stated that mortgage fraud risk is falling off, as also shown on their 2010 Mortgage Fraud Trends reports. In spite of this, mortgage fraud is still a foremostconcern for mortgage business because of the estimated $14 billion in fraud losses experienced in 2009 alone.
It’s not proper to know that mortgage professionals themselves head these schemes because for one, mortgage fraud has played a very important role in fueling housing crisis in the past years especially in California it got the top rank in Fannie Mae’s top ten states with mortgage fraud.
Real estate professionals, lenders, bank officers, attorneys, and tile insurance agents are the ones that have been convicted of mortgage fraud. And so each of these fraudsters might have different or the same mortgage scheme used to manipulate the original purpose of the deal. Types of mortgage fraud schemes vary and some of them are Backward Application, Air Loans, Silent Seconds, Reverse Mortgage Scams, Nominee Loans, Property Flips, Foreclosure schemes, and Equity skimming.
MARI Index reports that top ten states with mortgage fraud: Rhode Island (315), Florida (279), Illinois (215), Georgia (180), Maryland (170), New York (165), Michigan (136), California (111), Colorado (98), Missouri (98).
Fanni Mae has also indexed the top ten states hit the worst by mortgage fraud: California, Florida, Michigan, Georgia, Arizona, Texas, Minnesota, Illinois, Virginia, and Missouri.
Mortgage fraud is one of the fastest growing white collar crimes in the country, according to FBI. Although the FBI is sure that it cost billions annually, it’s true extent is unknown. Who pays for it? All of us through increased mortgage costs, higher taxes, and expensive properties. Even if it’s increasing, we can still do something about it. By educating ourselves, we can be vigilant in identifying any fraud activities that we know. And as responsible citizens of this country, we must report any mortgage fraud that we know so that it can be investigated and the fraudsters will be prosecuted properly.
All things can go wrong and Boston MA Real Estate is not exempted. Knowing the risks and potential problems that can ruin Home for Sale in Peoria Arizona is a wise decision and is truly worth your time.
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