Mortgage fraud still rising

Okay, have people not learned their lesson yet?  According to a recent report, in the second quarter of 2008 before the meltdown but well after the subprime debacle, mortgage fraud rose 45%.   AND this is fraud occuring most frequently with the application process.   What the report doesn’t say is if this is collusion between the broker and the customer or mostly on one side or other.  If potential homeowners are doing this, are they really that clueless?   At this point, I don’t see how anyone benefits from misrepresentations in the lending process in a down market.

Report

Tags: lending, loans, mortgage backed securities, mortgage fraud