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Report Finds Tampa No. 2 In Florida For Iffy Mortgages

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By SHANNON BEHNKEN | The Tampa Tribune

Published: December 2, 2008

TAMPA - In a state that leads the nation in mortgage fraud, Tampa had the second most cases of suspicious loan activity of any Florida city, according to a report released this morning from the Reston, Va.-based Mortgage Asset Research Institute.

Despite fewer loan applications, mortgage fraud cases were up 45 percent in the second quarter, compared with the same quarter a year ago, the report states. Of those cases, 21 percent of the loans were for properties in Florida.

Florida has led all other states in reported mortgage fraud for two consecutive quarters. California and Illinois ranked second and third, respectively, among the states.

In the Sunshine State, Miami had the most problem loans, the report says.

The most common types of misrepresentation for the Tampa area were associated with appraisals, flip sales and inflated values of more than 30 percent.

Professionals involved in fraudulent transactions in the Miami area honed in on the borrower's financial history and stability; those in Tampa were more focused on misrepresented property data, the report states.

Among the types of fraud, Florida had higher percentages than other states in asset and debt misrepresentation on the loan applications, verification of employment fraud, appraisal misrepresentation and escrow and closing document misrepresentation.

The Mortgage Asset Research Institute provides mortgage fraud prevention information and analyses to major lenders. Banks and mortgage origination companies report suspicious activity to the group, which then tracks the growth in fraud.

Reporter Shannon Behnken can be reached at (813) 259-7804 or sbehnken@tampatrib.com.

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