After a two year lull in response to the subprime mortgage crisis, lending fraud is back with a vengeance.
A new report by research firm CoreLogic
shows that mortgage fraud rose 17 percent last year. In comparison, fraud dropped a total of 57 percent in the two years following its peak in 2006. While the increase may seem tame compared to levels seen prior to the housing market burst, the numbers are no less alarming – especially considering the heightened security measures put in place since the recession. The fraudsters are becoming more sophisticated, The Wall Street Journal reports, often resorting to identity theft and even tapping insiders within the mortgage industry to pull off their heists. Could this sudden surge reveal new weaknesses in the primary mortgage market, or have we simply not learned our lesson yet?