Last year saw fewer federal cases of mortgage fraud than the government’s prior fiscal year as lender losses dropped off. But the number of suspected mortgage fraud reports filed by banks and credit unions grew.
Pending cases of suspected mortgage fraud numbered 2,691 in the fiscal year ended Sept. 30, 2011, according to the Federal Bureau of Investigation’s Financial Crimes Report to the Public.
Case activity was down from 3,129 in fiscal-year 2010 and also lower than 2,794 cases in fiscal 2009.
Mortgage fraud cases are investigated by the FBI’s Financial Institution Fraud Unit.
The decline was helped by lower loan originations, which the FBI said have fallen to the lowest level since 2001.
Significant mortgage fraud cases include a 56-count indictment against 10 defendants associated with Crisp and Cole Real Estate in Bakersfield, Calif. That case involves 108 loans for $142 million.
Much of the year’s activity involved foreclosure-rescue schemes.
FBI mortgage fraud investigations have resulted in 1,223 informations and indictments through fiscal-year 2011, while 1,082 defendants have been convicted, according to the report.
Restitution totaled $1.38 billion last year, while $0.12 billion in fines were issued.
The FBI said its investigations utilize undercover operations and wiretaps among other investigative techniques.
During fiscal-year 2011, there were 93,508 Suspicious Activity Reports were filed by financial institutions that suspected mortgage fraud.
Mortgage fraud SARs climbed from 70,533 during fiscal-year 2010.
Lenders reported losses of $3.029 billion during the most recent year tied to mortgage fraud. The dollar volume dropped off from $3.238 billion a year earlier.
