Mortgage, Housing Scams Double: FBI

An article published in USA Today makes reference to FBI that mortgage and housing scams have more than doubled since last year. The number of people who have been convicted in federal mortgage scams has more than doubled, and FBI expects more to come as foreclosure scams as the crisis over substandard, high-interest home loans escalates.

"Foreclosure rates for these mortgages, known as subprime loans, are at historic highs, according to surveys by the Mortgage Bankers Association and government records.

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"The FBI opened 1,210 mortgage fraud cases in fiscal year 2007, nearly triple the number of new cases in 2003. Convictions more than doubled from 123 in the 2006 fiscal year to 260 in 2007.

"We expect that number to increase again in 2008," says FBI financial crimes section chief Sharon Ormsby."