Wednesday, 11 May 2011

Reports Of Mortgage Fraud Rose To Record Level Last Year

Nevada has cleaned up its act when it comes to cases of mortgage fraud, according to a new report.
For the third consecutive year Nevada has stayed in the top 10 states in cases of mortgage fraud and deception. The report of the LexisNexis Mortgage Asset Research Institute just one top 10 list releases, but Nevada exclusion is an indication that mortgage fraud has declined in the state and is even lower than it should be based on the volume of loans, said Jennifer Butts, the institute's manager of data processing and co-author of the report.
Butts said that usually a reflection that state regulators, institutions and others have a good job of monitoring and preventing fraud to do.
"It seems that the supervisors and others do their jobs and attention," said Butts.
Despite the improvement over the last two years, Nevada remains No. 2 in the nation in LexisNexis fraud index that looks at the cases between 2006 and 2010. Cases of mortgage fraud contributed to the run-up in values ​​in southern Nevada housing market that eventually led to the nation's leading foreclosure rate and collapse of the price.
The index is determined by the reports of mortgage companies, credit institutions, brokers and insurers.
Florida was No. 1 in fraud cases by loans originated in 2010. It was followed by New York and California.
Florida is also ranked No.1 in the cumulative list from 2006 to 2010. After Nevada's No. 2 ranking Arizona, Georgia, Michigan, California, Illinois, Minnesota, Maryland and Virginia.
Nationally, reports of fraud and material misrepresentation fell 41 percent between 2009 and 2010, the first time a decline in some years, Butts said.
The decrease does not necessarily refer to cases of mortgage fraud, which industry sources say is still increasing, Butts said.
The decline brings the number of cases reported to 2006 levels, she said. The decrease of the reports is believed to be attributed to a decline in loan originations, fewer available resources to investigate and incidents and a stronger network that encourages professionals to report fraud to report, Butts said.


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