South Florida Institutions Uncovering Thousands of Suspicious Mortgages From Earlier in 2000s, According to New Data

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Earlier this week, we told you about how reports in Florida of suspected mortgage fraud are up more than 1,800 percent since 2002, according to data from the Financial Crimes Enforcement Network, an agency in the Treasury Department.

Miami-Dade, Broward, and Palm Beach counties are all in the top 13 counties nationwide for reports of suspected mortgage fraud, but there's more to it than that -- a wide majority of the cases discovered last year are cases in which the fraud occurred years ago but is only now being uncovered.

In 2011, there were 9,262 reports filed implicating 24,954 subjects. Of those subjects, 22,236 -- a full 89 percent -- were accused of committing fraudulent activity before 2009, indicating that much of the shady business that went on before the market crash is only now being uncovered.

FinCEN spokesman Bill Grassano says many of these suspicious transactions are uncovered when investors move to take some kind of action on mortgages -- selling a security or foreclosing on a property, for example -- and discover missing documents, fudged numbers or fabricated information.

Oh, and here's a graph of just how often financial institutions are discovering these shady deals now:
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God Sun01
God Sun01

udyW you are an enemy of this country.  I hope you don't have kids you are deluded and not in touch with reality. The world will be a better place when you and your kind die off. You have nothing for the future but bigotry and racism and the world doesn't need ant more of that. In the meantime why don't you practice silence for about a year.

JudyW
JudyW

Everytime the US engages in social justice (for whom?) instead of good business sense, we all pay. If the US re elects Odumbo for another term...there will be MORE Trayvon Martin incidences, with black people beating up whites, because they KNOW they can get away with it...and there will more unemployment, and more foreclosures. If the Am people are that stoooopid, then this country deserves to fail and go bankrupt. Why? Because the US has turned into a third World corrupt bunch of nincompoops. 

guest
guest

judyW you sound like a brain dead rightwing nut. your post does even make any sense. you right wingers will say just about anything regardless if it's true or not. Trayvon thought his life was in danger with a self appointed vigilante stalking him! and because martin kicked the punk zimmerman ass, he killed him.The punk zimerman will get away with killing martin. A black man's life is not worth anything to a large portion of the population in this country. You people have no social shame. Obama will win because you fascist white's are a minority now, the real American outnumber you racists 53% to 47% as long as the same people come out and vote again you've lost

Godsun
Godsun

Amerikkka has only had one period of social justice and that was a 3 yr period in the sixties. you people are so out of touch with reality I wonder how you are able to get thru the day. I fear if that if the republicans ever get the white house a again they will start a nuclear war. The republican party are enemies of the country. they have no solutions to any thing but give rich more and more . and try to block everything for the rest of the people

Rich Abdill
Rich Abdill

Did you read this article? 89 percent of suspected mortgage fraud cases found last year -- two years into the Obama administration -- involved alleged fraud that happened during the Bush administration. This has nothing to do with Odumbo, and everything to do with the deregulation of banks under Dubya.

Bubba the Wise
Bubba the Wise

I am not in disagreement with you regarding the Bush administration, but please do not try to make this an issue of just one administration. The Clinton administration (probably with good intentions) started a lot of the loans to persons unable to afford them by pushing Freddie and Fannie  to give out the loans and by the way, pay the officials of those organizations a ton of money. This loan giveaway continued in the Bush and Obama administrations. Let's point the finger to the real culprits, the Wall Street firms that packaged and sold these loans as investments. Also, when you reply to an obviously ignorant blogger such as Judyw, you give her credibility that she does not deserve. Ignore them and they go away.

Rich Abdill
Rich Abdill

Thanks for the thoughtful response. The main point I was trying to make was that the majority of the problem loans being discovered were made long before Obama was in office. I'm with you regarding the culpability of the banks and the firms that securitized the loans.

JudyW
JudyW

From 2000 to 2008, WE KNEW illegal aliens were getting mortgages, we KNEW that people on welfare who could NOT pay for them were getting mortgages. But if you were white, with a less than perfect credit score, you could NOT get a mortgage. Some of us tried to make an issue of this and we were ignored. And NOW the Chickens are Coming Home to Roost....

Rich Abdill
Rich Abdill

The whole subprime lending crisis was caused by people with lousy credit scores getting mortgages. Are you saying banks were prejudiced against lending to white people? And forgive me if I'm missing something, but if you had a bad credit score, why should a bank have given you money?

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