The Financial Crimes Enforcement Network Reported…

The increase in loan fraud is forcing Banks to repurchase loans. I predict the number of uncovered fraudulently packaged loans is about to grow exponentially. (by Joe Vera)

VIENNA, Va. – The Financial Crimes Enforcement Network (FinCEN) today, in its First Quarter 2011 Mortgage Loan Fraud (MLF) analysis, reported that the number of MLF suspicious activity reports (SARs) rose to 25,485 up 31 percent from 19,420 in the first quarter of 2010. FinCEN attributes the increase to large mortgage lenders conducting additional reviews after receiving demands to repurchase poorly performing mortgage loans. In the first quarter of 2011, 86 percent of MLF SARs reported activities which occurred more than two years prior to the filing of the SARs.

The analysis also found that California dominated the top mortgage fraud rankings.