A big surge in the number of active mortgage fraud cases has helped push the Second Quarter 2010 FraudBlogger.com Index higher.
The heavier caseload follows increased efforts by the Obama administration to prosecute mortgage crimes, according to Ann Fulmer, vice president business relations at Interthinx.
"The cases brought to date represent only the tip of the iceberg in terms of how much fraud was actually committed during the real estate boom," said Fulmer.
"It's sobering to know that only a small minority of cases are ever prosecuted, and it ought to serve as a reminder that the industry must protect itself by focusing on prevention."
The mortgage fraud index, which is published by MortgageDaily.com based on activity tracked at the mortgage fraud blog FraudBlogger.com, was 1699. The index was higher than the prior quarter's 1144 and also elevated from a year earlier.
The highest level for the FraudBlogger.com Index was 2790 in the fourth quarter of 2008. California had the highest index at 283. Cases in the Golden State involved around $436 million in mortgages, more than any other state.
The index reflects both the number and dollar amount of active mortgage fraud cases. The latest index was impacted by a surge in active cases as the administration's Operation Stolen Dreams targeted mortgage fraud activity.
Fulmer, who began fighting fraud in 1996 when a local fraud ring targeted homes in her Georgia neighborhood, speculated that the number cases has also escalated as the government-sponsored enterprises have increased repurchase demands and the originators that are buying back the loans are discovering fraud through their own investigations.
