The cost of mortgage fraud
The mortgage industry lost over $1 billion dollars to mortgage fraud last year, with the dollar losses doubling between 2004 and 2005. Contributing to the fraud problem are deceptive sellers, overtaxed buyers, builders who need to unload inventory, dishonest loan officers, and real estate brokers seeking commissions.
Most mortgage fraud is based upon fraudulent property appraisals. Experts say that unsophisticated consumers don’t understand the mortgage process and paperwork, and this allows the thieves to take advantage of them.
Tags: mortgage fraud, fraud, fraudulent property appraisals
