The FBI has issued a Mortgage Fraud Report for 2010, and the figures are not favorable for the mortgage industry. Fraud continues to be a trillion dollar plague on our industry. The fraudsters don’t follow the law requirements, and may not even be licensed. Adding more regulations for those that are already meeting the law requirements, will not stop fraudsters. We as a whole need to:
- Start turning in known or suspected fraudsters
- Set ZERO FRAUD TOLLERANCE office policies
- Train employees in Red Flag Rules to identify fraud and identity theft
Analysis of available law enforcement and industry data indicates the top states for known or suspected mortgage fraud activity during 2010 were California, Florida, New York, Illinois, Nevada, Arizona, Michigan, Texas, Georgia, Maryland, and New Jersey; reflecting the same demographic market affected by mortgage fraud in 2009.
Fraud hurts everyone in our industry. Until we get it under control, how can we expect investors to purchase mortgage backed securities and get our lending sources strong?
For more information and to read the FBI report, CLICK HERE!
http://www.fbi.gov/stats-services/publications/mortgage-fraud-2010/2010-mortgage-fraud-report
