Mortgage fraud eclipses all other financial crimes, FINCEN reports

Recent years of economic and housing market instability has made the U.S. a hotbed for financial fraud and other white collar criminal activity, but even as overall conditions improve, there appears to be no end in sight for the rampant spread of fraud in the mortgage industry.

Recent years of economic and housing market instability has made the U.S. a hotbed for financial fraud and other white collar criminal activity, but even as overall conditions improve, there appears to be no end in sight for the rampant spread of fraud in the mortgage industry.

According to a recent report from the Financial Crimes Enforcement Network, potential mortgage fraud reports accounted for 37 percent of all suspicious activity filed between 2010 2011.

Meanwhile, between 2010 and 2011, potential mortgage fraud reports rose 31 percent, as there were 92,028 filings in 2011 compared to just 70,472 the previous year. As a result of this increase, mortgage fraud replaced check fraud as the highest reported event of criminal activity to the law enforcement agency. 

This rising trend is a prime example of why mortgage lenders and borrowers alike should thoroughly research anyone they conduct business with. Since most companies that handle home loans are required to receive some form of federal or state certification, looking into the background of a financial firm can give borrowers and lenders the safety and soundness needed to confidently conduct business with an individual.



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