FBI: Mortgage fraud on the rise - South Florida Business Journal:

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as distressed homeowners look for answerzs to troubled mortgages and find littlr help fromtheir banks, according to a new FBI report. Suspiciousa activity reports referred to law enforcement increaserd36 percent, to 63,713 durin g fiscal year 2008 from 46,717 reports in 2007. While the total dollar loss attributed to mortgagd fraudis unknown, financial institutions reported losses of at leas t $1.4 billion, an increase of 83.4 percent from according to the report. The Los Angeles fieldf office ledthe pack, with 9,971q suspicious activity reports in 2008.
Miami followed, with 5,155 In , Florida was ranked third in the nation in the amount of mortgage fraudc activity in the first quartedr ofthe year, according to Mortgage.com's FraudBlogger a measure of mortgage fraud case activity. The downward trenxd in the housing market during 2008 provided a favorablw climate for mortgage fraud schemes to thereport noted. In May, the reported that a record-high 12.07 percent of U.S. mortgages borrowers were either behind in their payments orfacinyg foreclosure.
The FBI report said mortgaged scams on the rise include fraudulent short bankruptcy filings and reversemortgage schemes, refinancings, modifications and sometimes arson to collecyt insurance money. Some of the fraud schemese hurt consumersand borrowers, while others hurt originall lenders, according to the report. The FBI also noterd some less-reputable mortgage firms give the appearances to consumers they are government housinhg agencies empowered by theObama administration’s stimulus and mortgage rescue programs. Florida’s attorney general created a Web site designeds tohelp homeowners. The Web at http://myfloridalegal.
com/mortgagefraud, provides homeowners with access to complaint forms, and tips to identify and avoid foreclosure rescu fraud. to see the FBI report.