On Friday November 3, 2006 the Financial Crimes Enforcement Network (FinCEN) revealed that suspected mortgage loan fraud in the US has risen by 35 percent in the past year. FinCEN conducted an assessment, which was based on an analysis of Suspicious Activity Reports (SARs) regarding suspected mortgage loan fraud, to identify trends and patterns that may be useful to law enforcement, regulatory authorities, and financial institutions offering mortgage loan products.

FinCEN had noticed that SARs for mortgage fraud had risen by 1,411% by 2005. Many of the SARs reviewed included more than one characterization of suspicious activity in addition to mortgage fraud. “False statement” was the most reported activity in conjunction with mortgage loan fraud, while “identity theft” was the fastest growing secondary characterization reported. In total they found 82,851 SARs had been filed in the 10 year period April 1, 1996 to March 31, 2006.

FinCEN’s said its findings in the assessment are supported by the recent rise in the number of pending law enforcement cases involving mortgage loan fraud.

Click here to read the full report from FinCEN