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Business - Scam Alert

Sunday, Jul. 12, 2009

FBI: Mortgage fraud on rise

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Falling housing prices are driving up reports of mortgage fraud, with the FBI saying last week that reported losses last year are up 83 percent and climbing even higher in 2009.

In its 2008 Mortgage Fraud Report, the FBI says the downturn in the economy, a spike in foreclosures and defaults and diminishing credit availability "fueled a rampant mortgage fraud climate fraught with opportunistic participants desperate to maintain or increase their current standard of living."

The report, which collects data from law enforcement, the mortgage industry and other government agencies, says the number of suspected mortgage fraud reports increased one-third to 63,713 in fiscal 2008, up from 46,717 the previous year.

The report says the precise losses are unknown, but financial institutions reported $1.4 billion lost in fiscal 2008. That's an increase of 83.4 percent above the previous fiscal year.

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