Real Estate Fraud Booms

The L.A. Times reports:

Real estate fraud is surging, fueled by a booming housing market, feverish refinancing activity and lax regulation, authorities say.

In the last two years, according to the FBI, reports of mortgage fraud nationally have tripled to 21,994, while the dollar value of the alleged crimes quadrupled to $1.01 billion.



The dramatic run-up in the housing market during the last four years was a boom with few equals. Abnormally low interest rates spurred refinancings, construction and speculation, while the industry developed loan products for every income and attitude.

Swindlers have lots of room to hide in an industry so flush, so busy and so much more complex than it used to be.

A growing story.