Summary Box: Report finds mortgage fraud still a problem; incidents rise 7 percent in 2009

Summary Box: Mortgage fraud incidents rise 7 pct

THE NEWS: Incidents of residential mortgage fraud rose 7 percent last year, a sign that scammers are still targeting the industry despite more diligent efforts to find and report such activity. The number of mortgage fraud reports is down sharply, though, from the 26 percent jump seen in 2008, according to a study released Monday by the LexisNexis Mortgage Asset Research Institute.

THE NUANCES: The slower growth rate is being attributed to better reporting and policing for fraud activity, but there’s more to it. The report also said more scammers are using the Internet to remain anonymous.

THE NITTY-GRITTY: Among states, Florida was No. 1 for residential mortgage fraud. New York, California, Arizona and Michigan completed the top five states. As for the types of fraud, misrepresenting information on mortgage applications accounted for 59 percent of reported incidents. Appraisal-related fraud was second, rising to 33 percent from 22 percent in 2008.