The FraudBlogger Index, which reflects both the dollar amount of fraud and the number of active cases, was 1,230 during the second quarter, jumping from 713 in the prior period and more than double the 590 value a year earlier.
"The surge in mortgage fraud activity was primarily driven by two factors," MortgageDaily.com Publisher Sam Garcia said. "First, the Federal Bureau of Investigation and the U.S. Department of Justice stepped up their efforts with Operation Malicious Mortgage - yielding increased indictments and arrests. Second, we're seeing greater stress in the 2005 through 2007 vintages as the real estate market continues to weaken, causing more of the fraudulent loans to surface."
Compared to the second quarter 2007, Florida was up $174.0 million - increasing more than any other state. Illinois was up $153.0 million and Nevada jumped $112.6 million. Georgia saw the biggest improvement from 2007, down $146.4 million.
The state with the highest index was Michigan, at 123, which was up from 103 the prior quarter and the prior year. Next was Florida, which came in at 120, then Texas, with 97, and Illinois, at 90. The fifth highest state index was in Hawaii, at 83.
