Personal Injury Law

Mortgage Fraud - Florida Second In The Nation

By Eddie Farah

Mortgage fraud is on the rise, with Florida a hotbed of fraudulent activity by people trying to get money from a lender.

A Mortgage Asset Research Institute report puts Florida at second in the nation for fraud reported in 2008 (Rhode Island was first).

Fraud is defined as including fraudulent information on a loan application. That was most commonly seen in 67 percent lying on loan applications. People may provide false documents to gain a line of credit, or they may lie on their tax returns and financial statements. Some people overstate their employment picture or the money they have in the bank and the appraisal value of their property.

Nationwide false applications amount to about 60 percent of fraud.

This information is coming in as banks more carefully scrutinize the people they are lending too. Miami reported the most problems with fraud during the third quarter, with problems in about 27 percent of applications and Orlando ranked second.

This may ultimately mean fewer people obtain home mortgages, but this type of scrutiny and due diligence is long overdue. So is government regulation and banks doing what's being done here - checking before a loan is made. The spending and lending party is over.

Full post as published by Jacksonville Personal Injury Lawyer on March 21, 2009 (boomark / email).