The FBI issued its annual report on mortgage fraud, named Los Angeles the mortgage fraud capital of the US, with Miami coming in second. Chicago had been number one.
The report explained that mortgage fraud in 2008 reflected the overall downturn in the US economy, with the industry noting spikes in foreclosures and defaults, while financial markets continued to contract. That served to diminish credit to financial institutions, businesses, and homeowners.
"These combined factors," the report explained, "uncovered and fueled a rampant mortgage fraud climate fraught with opportunistic participants desperate to maintain or increase their current standard of living. Industry employees sought to maintain the high standard of living they enjoyed during the boom years of the real estate market and over-extended mortgage holders were often desperate to reduce or eliminate their bloated mortgage payments."
Thursday, July 9, 2009
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment