Mortgage Fraud Jumps 42 Percent, Report Says
RENEE MONTAGNE, host:
NPR's business news starts with more mortgage fraud.
As banks tighten lending standards, making home loans harder to come by, a new study shows mortgage fraud is increasing. The Mortgage Asset Research Institute says the number of reported fraud cases jumped 42 percent for loans issued in the first quarter of this year. Fraud typically involves misrepresenting a borrower's income, employment history or assets. It's a problem for lenders who are left holding the bag when a borrower defaults. The states with the most mortgage fraud are Florida and California.
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