2014

California Claims #1 Mortgage Fraud Ranking

DALLAS, Dec. 13, 2011 /PRNewswire/ -- Activity climbed on mortgage fraud cases being prosecuted in California, leaving the state with more fraud than any other. New York also saw acceleration, while Florida's mortgage fraud index topped the list and Minnesota remained prominently perched among the worst locales. But as a whole, the country's case activity was slower.

The Third-Quarter 2011 Mortgage Fraud Index from MortgageDaily.com came in at 1170. The index represents activity on civil and criminal cases. Victim lenders were deceived by fraudulent documentation or inflated appraisals. Cases were tracked from the mortgage fraud blog FraudBlogger.com.

"The Mortgage Fraud Index reflects current efforts by law enforcement officials to prosecute defendants who typically committed mortgage fraud three to five years ago," said Mortgage Daily founder and Publisher Sam Garcia said. "Many of the recently opened cases were uncovered by mortgage bankers who were forced to repurchase the loans."

The index fell 7 percent from the second quarter but climbed 16 percent from a year earlier.

On a dollar basis, the aggregate balance of mortgage fraud cases was $1.3 billion -- lower than the second quarter and the third-quarter 2010.

Index by Quarter

Period

Index

Amount

# Cases

Q3 2011

1173

$1,333.189,232

175

Q2 2011

1261

$1,587,573,586

194

Q3 2010

1007

$1,850,531,120

151


The number of cases with activity in Florida climbed, giving it the worst state fraud index. California had the second-highest index, followed by Minnesota.

Top States by Index

ST

Index

FL

170

CA

153

MN

70

NY

63

TX

60


Based solely on the dollar amount of cases with third-quarter activity, California's $204 million was highest. New York was a close second, while Minnesota maintained its standing among the five-worst states.

Top States by Total Amount

ST

Amount

CA

$204,273,490

NY

$199,600,000

FL

$144,320,669

SC

$108,978,654

MN

$76,400,000


"While mortgage fraud has historically been more prevalent in states hit hard by the housing crisis, Minnesota and New York -- two states that have not suffered as badly from foreclosures -- have recently emerged as active states for prosecutors," Mr. Garcia added.

Full Third-Quarter 2011 Mortgage Fraud Index report:
www.mortgagedaily.com/FraudIndex121311.asp

Mortgage Fraud News:
http://www.mortgagedaily.com/MortgageFraud.asp?spcode=pr

Mortgage fraud Blog:
http://www.FraudBlogger.com

About MortgageDaily.com
Founded in 1998, MortgageDaily.com is a dominant online source of news, statistics and analysis for the mortgage industry. Visit us online at http://www.MortgageDaily.com.

CONTACT:
Holly Himelright
NewsAlert@MortgageDaily.com
214.521.1300

 

SOURCE MortgageDaily.com



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