Mortgage Fraud Soars

By Jennifer Chambers, The Detroit News

Mortgage fraud losses in Michigan jumped from nearly $9 million to $26 million over a two-year period in what has become one of the fastest-growing white-collar crimes in the nation.

“These criminals are literally trying to steal the homes out from underneath unsuspecting citizens,” said Oakland County Clerk Ruth Johnson, who formed a task force last month with police and prosecutors to combat the problem.

Nationally, the Federal Bureau of Investigation reports that mortgage fraud losses jumped from $429 million in 2004 to $1 billion in 2005. Michigan was identified as one of the top 10 “hot spots” in 2005 for mortgage and deed fraud by the FBI. The crime can take many forms, and combating it has become an FBI priority because the scams not only hurt lending institutions and ultimately the health of the U.S. economy, but also thousands of homeowners every year.

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