FBI: Mortgage Fraud Rose in 2007

WASHINGTON -- The sinking housing market is fertile ground for mortgage fraud, the FBI warns in a new report, according to The Associated Press Wednesday.

The agency says that reports of suspected mortgage fraud rose 31 percent to 46,717 in fiscal 2007, which ended Sept. 30, 2007, the AP reported.

That was up from 35,617 in the previous fiscal year. In the first half of fiscal 2008, there were more than 33,000 such reports, quickening the pace of mortgage fraud for this fiscal year, an FBI spokesman said as the report was released Tuesday, according to the AP.

The FBI said that mortgage fraud losses in fiscal 2007 totaled more than $813 million, although only 7 percent of "suspicious activity" reports detailed the loss in dollars, the AP reported.

-- NYSSCPA.org News Staff

Posted on 5/14/08