Alert April 08, 2008

FinCEN Updates Mortgage Loan Fraud Report

The Financial Crimes Enforcement Network released an update to its November 2006 mortgage loan fraud assessment, which is based upon analysis of suspicious activity reports provided by financial institutions. The previous study examined a statistical sample of SARs reporting mortgage fraud filed between April 1996 and March 2006. This updated study continues the analysis for reports filed through March 2007. The study notes a 44% increase in SARs reporting mortgage fraud in 2006. The study discusses trends in fraudulent activity and red flags. Click here for a copy of the study.