Mortgage Fraud on the Rise: Banks Report 7% Increase in Fraudulent Activity

By Kyle Chezum Updated on 12/15/2010

12/15/2010

As banks check old loans for errors, fraudulent mortgage activity may come to light at a faster rate than previously encountered.  The first half of 2010 brought on a 7% increase in reports of mortgage fraud from major banks.  Over 35,000 such reports were filed during the period.

The heightened scrutiny is tied to claims that some institutions may have packaged loans into mortgage-backed securities and sold them without proper analysis and review.

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