Friday, April 27, 2007

Cavalcade of Capitalists: Reports of Mortgage Fraud Increasing

Mortgage brokers paid according to sales volume rather than loans paid back and collusion between brokers, appraisers, Realtors, and attorneys to inflate sales prices are instances of mortgage fraud that NPR mentions in today's Your Money report:

Reports of suspected fraud from federally regulated institutions more than doubled between 2003 and 2006. Federal officials estimate mortgage fraud totaled from $1 billion to $6 billion in 2005 alone.
Borrowers over a barrel are starting to lobby governments to respond to foreclosures based on mortgage fraud.

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