Suspicious activity reports show increase in mortgage fraud in U.S.

By Christine Duhaime | January 31st, 2011

Money laundering suspicious activity reports (SARs) filed with FinCEN, the U.S. financial intelligence unit, show a slight increase in mortgage fraud in the U.S. According to FinCEN’s third quarter 2010 mortgage report, “Mortgage Loan Fraud SAR Filings“, 9% of all SARs filed in the 2010 third quarter indicated mortgage loan fraud as a suspected activity, an increase of 2% over the same period in 2009.

Key findings in the report:

  • More than 80% of  SARs indicating mortgage loan fraud involved suspicious activity amounts under US$500,000.
  • Nearly all SARs indicating mortgage loan fraud with reported loss amounts indicated amounts under US$500,000.
  • Reporting entities who filed SARs with FinCEN identified over 50% of SARs indicating mortgage loan fraud as borrows, not lenders.
  • California and Florida had the highest number of incidents, followed by New York and Illinois. Nevada and Arizona were the third and fourth highest per capita in the U.S.
Share this Post:
  • Facebook
  • Twitter
  • LinkedIn
  • Print
  • email

Comments are closed.