This report provides findings on mortgage fraud data analysis. Although the exact amount of money lost to mortgage fraud is unknown, one study estimates that more than $10 billion in loans were originated with fraudulent application data in 2010. Mortgage fraud investigations are time intensive, with various schemes often used by multiple perpetrators, who can include lenders, appraisers, investors, and bank representatives. Examples of mortgage fraud include illegal property flipping, fraudulently inflated appraisals, backward application schemes, debt elimination/reduction schemes, and many others. To address this critical issue, BJA awarded grants totaling approximately $10.7 million under the American Recovery and Reinvestment Act of 2009 Edward Byrne Memorial Competitive Grant. Program and approximately $7.7 million under the FY 2010 Edward Byrne Memorial Justice Assistance Grant Program to focus specifically on reducing mortgage fraud and crime related to vacant properties. The 14 grantees represent 6 of the 10 jurisdictions with the highest number of suspicious activity reports.
Mortgage Fraud
NCJ Number
240462
Date Published
October 2012
Length
4 pages
Annotation
This report examines the scope of mortgage fraud in 2010.
Abstract