The Wall Street Journal recently requested data from a research firm about mortgage fraud and the results were unexpected.  Mortgage fraud has grown by a whopping 17 percent from last year, after having declined by 57 percent since its peak two years ago.  According to the newspaper,

No-doc loans are a thing of the past, and many lenders now require borrowers to furnish proof of employment, tax forms, credit reports, bank statements and other documents.

Fraudsters have adapted to the new restrictions. With banks less apt to lend to borrowers with shaky finances, criminals rely more on falsifying documents, recruiting loan officers and other bank insiders to work for them, and stealing identities to get loans, federal investigators and mortgage industry research reports.

The newspaper further reported on some of the most recent fraudulent activity, including a complex wire fraud scheme that involved 29 defendants that included real estate agents, bankers, lenders, and an appraiser.

A true picture of the losses is expected to be discovered as banks are forced to write off the fraudulent loans in the coming years.