Suspicious activity reports (SARs) regarding foreclosure rescue scams continued to grow in the first half of this year, even as the total number of SARs indicating mortgage loan fraud (MLF) declined, the Financial Crimes Enforcement Network (FinCEN) announced in its latest Mortgage Loan Fraud Update.
Financial institutions filed 2,360 foreclosure rescue related SARs in the first half of the year. FinCEN forecasts that if this current pace continues, the total number of foreclosure rescue scam SARs for the calendar year will far exceed the total of 2,782 reported in 2011.
Geographically, foreclosure rescue SAR subjects were disproportionately concentrated in California. This was consistent with FinCEN's past research on debt elimination scams, a type of foreclosure rescue scam, which indicated a large number of the California subjects.