For Immediate Release
May 13, 2008
FBI National Press Office
FBI Issues 2007 Mortgage Fraud Report
to the Federal Bureau of Investigation’s 2007
Mortgage Fraud Report, released today, mortgage fraud
Suspicious Activity Reports referred to law enforcement
increased 31 percent to 46,717 during Fiscal Year (FY) 2007.
The total dollar loss attributed to mortgage fraud is unknown.
However, seven percent of reports filed during FY 2007 indicated
a specific dollar loss, which totaled more than $813 million.
“The $813 million loss denoted in this report is
just the tip of the iceberg, reflecting only a small percentage
of financial damage suffered by victims of mortgage fraud,” said
Assistant Director Kenneth W. Kaiser, FBI Criminal Investigative
Division. “The FBI remains committed to working with
our law enforcement, regulatory, and industry partners
to unravel these complicated fraud schemes and bring their
perpetrators to justice.”
Other key findings presented in the report include:
- The subprime share of outstanding loans has more than
doubled since 2003, putting a greater share of loans
at higher risk of failure.
- More than 2.2 million foreclosure filings were reported
on approximately 1.29 million properties nationally during
FY 2007, up 75 percent from FY 2006.
- Analysis of available information indicated that mortgage
fraud was most concentrated in the north-central region
of the United States.
- The top 10 mortgage fraud states for 2007 were Florida,
Georgia, Michigan, California, Illinois, Ohio, Texas,
New York, Colorado, and Minnesota. Other states significantly
affected by mortgage fraud included Arizona, Maryland,
Utah, Nevada, Missouri, Indiana, Tennessee, Virginia,
New Jersey, and Connecticut.
- The downward trend in the housing market provides an
ideal climate for mortgage fraud perpetrators to employ
a myriad of schemes. Emerging and re-emerging schemes
in 2007 included builder-bailouts, seller assistance,
short sales, foreclosure rescue, and identity theft exploiting
home equity lines of credit.
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