The Mortgage Asset Research Institute just released a report on mortgage fraud for the first three months of the year, and California ranked No. 2, behind the No. 1 state of…..Florida!
Coming in No. 3 was a three-way tie: Illinois, Maryland and Michigan.
The MARI maintains a database of reported incidents of fraud and misrepresentations, and the ranking is based on total number of properties involved in fraud (the totals were not given). Nationwide such reports were up 42 percent in the first quarter vs. a year ago. And here I thought fraud would decrease after the credit crunch began last summer.
Although the report didn’t break out Orange County, it said in California 52 percent of properties with “misrepresentations” are in the Los Angeles area.
Here’s more:
“Income and employment misrepresentation on the mortgage application rank high in Florida, California, Illinois and Maryland. Florida and Maryland report higher income than employment misrepresentation, and California and Illinois report slightly higher employment than income misrepresentation.”
And…
“The first quarter data reveals that loan application misrepresentation continues to plague the industry. According to the FBI’s 2007 Mortgage Fraud Report, ‘the downward trend in the housing market provides an ideal climate for mortgage fraud perpetrators to employ a myriad of schemes suitable to a down market. Simply stated, mortgage fraud will not disappear — in fact, it is expected to significantly grow, evolve and penetrate new areas within the industry”
Read the full report HERE.
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Income and employment misrepresentations? I’M SHOCKED
Geeeeze, I always wondered how those busboys and janitors were buying $400,000 homes.
The REASON this is so high is that NOW most lenders are required to use MARI. In the past most lenders did not subscribe to the service. Maybe if they did use it in the past things would be different.
Lou Pacific
Real Estate and Mortgage Company Consultant
Serving OC for 30 Years
I think the Mortgage Asset Research Institute has fraud going on in their ranks…..Florida ahead of California…no way. WE’RE NUMBER 1. WE’RE NUMBER 1….GO CAL!
I was wondering how all those illegal people in San Juan Capistrano were buying 500-600k homes. Now I know. Mortgage fraud. At least most have them have gotten foreclosed on. Lots of emty houses in San Juan. Lots of bargins.
The only thing keeping the mortgage mess from shooting through the roof is the fraud. Otherwise there’d be almost no home sales.
My wife and I make $120k a year. NO ONE will give us a loan. We can actually pay for a house, yet there’s no way to get one. Meanwhile, illegals are buying $700k houses with fraudulent loans.
Perhaps it was only a misunderstanding and not really fraud at all. When asked about income - maybe they all assumed it meant - How much do you WISH you made.
Oh well as the saying goes - “Wish in one hand and S**T in the other, and let’s see which one fills up first!”
It’s no surprise. California and Florida have the highest population. It would be strange if it was not this way.