In 2001 the FBI tracked 102 mortgage fraud investigations.  So far this year the FBI has 533 pending mortgage fraud investigations.  In 2001 banks reported 4,220 cases of suspicious activity; so far this year, 12,100. 

"It has the potential to be an epidemic," said Chris Swecker, FBI assistant for criminal investigations.  "You can find this anywhere in the country."

However, the FBI indicates the hot spots for fraud are Florida, California, Nevada, Michigan, Missouri and Illinois.  Schemes include property flipping where a property appraised for much more than it's worth is purchased and then quickly sold leaving the mortgage lender holding a property worth less than the loan it granted.  Another scheme is to fake identities and credit histories and submit forged documents.

The FBI has targeted mortgage fraud for extra attention in recent months resulting in 151 charges since early August consisting of potential bank losses of $3 billion.

Since in most schemes loan officers, realtors and title company employees work together this is a difficult crime for banks to avoid.  Nevertheless with the added attention from the FBI any potential schemers out to think twice before acting.