Did You

Know

Facts about mortgage fraud and foreclosure rates

Subprime mortgages account

for about 14% of all

first lien mortgages, but …

… accounted for

50% of foreclosures

4th quarter of 2006.

There's a direct correlation

between the fees and pointscharged by a mortgage broker

and …

… the incidence of

misrepresentation

in a loan package.

A mortgage is 5 X more

likely to default in the

first 6 months if …

… it’s application contains

misrepresentations.

The probability of defaultfor a subprime loan is ...

… 6 X that

for a prime loan.

It's estimated that mortgage

fraud losses for 2006

will reach ...

… $4.2 Billion.

In 2006, mortgage fraud

was 10 X more

pervasive than …

… credit card fraud.

Foreclosure rates

climbed 35%

in 2006!

It’s a bitter pill

to swallow!

Response of Title Industry!