A study by the Appraisal Institute reveals that reports of mortgage fraud in the United States increased 7 percent from 2008 to 2009.
The Appraisal Institute's research found that disciplinary actions against appraisers, as reported by the Appraisal Subcommittee, have increased each year since 2005. There were 2.6 times as many disciplinary actions from Jan. 1, 2005, to April 1, 2010, as in the previous five-year period.
The Appraisal Subcommittee of the Federal Financial Institutions Examination Council, created by Congress in 1989, oversees the real estate appraisal process as it relates to federally related transactions. The Appraisal Subcommittee reported 162 disciplinary actions in 2005, 198 in 2006 (a 22.2 percent increase from the previous year), 280 in 2007 (41.4 percent increase), 337 in 2008 (20.4 percent increase) and 413 in 2009 (22.6 percent increase). Through March 31, there have been 78 disciplinary actions reported this year.
To see the Mortgage Asset Research Institute's fraud report index, please visit http://solutions.lexisnexis.com/forms/MortgageFraudCaseReport12?source=RD_fraudreport