MORTGAGE ASSET RESEARCH INSTITUTE 2009 FRAUD REPORT
In April 2010, the Mortgage Asset Research Institute issued its 2009 mortgage fraud report. The report gathered and analyzed various sources of data primarily regarding mortgage fraud in connection with federally insured loans. The statistics show a continued rise in mortgage fraud, even though less loans are being originated.
There was an overall increase in mortgage fraud reports (suspicious activity reports) of 5% to 8% from 2008 to 2009. Arizona now ranks 4th in the Country for incidents of mortgage fraud, having about 58% more reported fraud than expected for its volume of new loans in 2009. Notably, fraud in the appraisal increased from 22% of all fraud reported in 2008 to 33% in 2009.
Vigilance and diligence are the keys. Lenders should ensure that they verify and double check all data provided in connection with a loan.