Mortgage-fraud SARs Increased in the Third Quarter of 2011

On March 5, 2012, the Financial Crimes Enforcement Network (FinCEN) released its Mortgage Loan Fraud Update, which reported that the 19,934 mortgage loan fraud (MLF) suspicious activity reports (SARs) filed during the third quarter of 2011 represented a 20-percent increase over 2010’s third quarter total. MLF SARs accounted for 10 percent of all SARs filed during the quarter, according to FinCEN.

The FinCEN update also reported that 5,728 of the MLF SARs filed in the third quarter—29 percent of the total—reported activity that occurred between October 2009 and September 2011. Types of suspicious activity reported included: some form of loan workout or debt elimination attempt, questionable refinance or loan modification attempts by borrowers or others targeting distressed homeowners, and Social Security number discrepancies submitted in the original loan application and the workout request.


Questions? Contact the Compliance Hotline: 1.800.546.4465,

Posted in Compliance News, NCUA.