PARAMOUNT MORTGAGE - LENDER'S BLOG Mortgage Fraud Rampant and Growing According to the FBI July 20th, 2009 9:14 AM Mortgage Fraud Rampant and Growing According to the FBI Washington, DC - The Federal Bureau of Investigation (FBI) released its 2008 Mortgage Fraud Report on Tuesday indicating that losses increased 83 percent last year and are expected to climb even higher in 2009. Missouri and Illinois rank in the top ten states with significant fraud activity. The federal agency said the downturn in the economy, a spike in foreclosures and defaults, and diminishing credit availability "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 overextended mortgage holders were often desperate to reduce or eliminate their bloated mortgage payments," the report said. The FBI considered two types of mortgage fraud: Fraud for property - This fraud involves an applicant making misstatements like embellishing income and concealing debt to get a loan. Fraud for profit - Elaborate schemes are used to falsify appraisals and loan documents. Other techniques involve straw buyers, identity theft and employing shell companies to deceive. The FBI says victims include borrowers, the mortgage industry and neighbors who ultimately lose housing value. The report collected data from law enforcement, the mortgage industry and other government agencies. An FBI Snapshot of Mortgage Fraud: Estimated Annual Losses*: $4 billion to $6 billion Total Mortgage Fraud Suspicious Activity Reports (SARs) in Fiscal Year 2008: 63,173, with more than $1.5 billion in losses. (2009 SARs through 4/30/09: 40,901) Total FBI Mortgage Fraud Task Forces/Working Groups: 65 Pending FBI Mortgage Fraud Investigations (through 4/30/09): 2,440 Cases opened in Fiscal Year 2009 (through 4/30/09): 965 (compared to 136 in all of Fiscal Year 2004) Successes in Fiscal Year 2008: 574 indictments/informations; 354 convictions States with Significant Mortgage Fraud problems in 2008*: 1. Rhode Island 2. Florida 3. Illinois 4. Georgia 5. Maryland 6. New York 7. Michigan 8. California 9. Missouri 10. Colorado *Source: The Prieston Group - Source: Mortgage Asset Research Institute Link: Mortgage Fraud Posted by Customer Service on July 20th, 2009 9:14 AMPost a Comment (0) * Name: * Email Address: URL: Comment: Type the characters you see in this picture, click "Submit" when finished.   This helps us prevent automated programs from posting comments and sending spam. * Name: * Email Address: Address: City: State: Zip:   This helps us prevent automated programs from creating bogus contacts and adding them to your contacts database.

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Paramount Mortgage Company: Missouri NMLS ID: 67856 • 347 N. Lindbergh Blvd., St. Louis, MO 63141 • Phone: (314) 372-4300  • Toll-Free: (800) 735-5957 • Fax: (314) 372-4399  Branch Offices – Florida: Florida NMLS ID: 67856 •  4511 North Himes Ave., Suite 200, Tampa, FL 33614 • (813) 449-4260 • Fax: (888) 258-0619   California: California ID: 41310735850 • Canoga Ave, Suite 400, Woodland Hills, CA 91364  • Phone: 818-710-7165  PMC Mortgage Washington: Washington ID: CL-67856 • 14205 SE 36th Street, Suite 100, Bellevue, WA 98006 • Phone: (425) 637-0700  • Fax: (425) 671-5488   PMC Mortgage Idaho: Idaho ID: MBL-7528 • 1875 N. Lakewood Dr., Suite 102, Coeur d'Alene, ID 83814 • Phone: (208) 765-5626 • Fax: (208) 667-2766  State Licences: Texas: SML 50448 • Illinois: MB 0006371