Despite concerns over the economy, and the mortgage market (or maybe because of them) mortgage fraud is on the rise. Indeed, the Mortgage Asset Research Institute reports that mortgage fraud is up 42% from last year, with many loan applications overstating income (that then isn’t properly verified by mortgage lenders).
BloggingStocks offers two possible explanations for this mortgage fraud issue:
1. Tighter credit markets mean that desperate mortgage lenders are continuing their shoddy lending practices.
2. Mortgage lenders are actually reporting mortgage fraud as they should.
Of course, points out BloggingStocks, a combination of both is likely to be the answer.
Technorati Tags: loan applications, mortgage fraud, mortgage lenders, mortgage loan blog, mortgage market, mortgage market blogAdd to:
Mortgage fraud is a type of real estate fraud that most often hurts the financial institutions that lend money for purchasing property. The most common form of mortgage fraud involves fraudsters acquiring property and then artificially increasing the property’s value through a series of sales and resales between the fraudster and someone in cooperation with them..
Posted by: san diego real estate | April 21st, 2009 1:52 am |