Mortgage fraud reports up 26 percent

WASHINGTON -- Illinois Attorney General Lisa Madigan says a new report on mortgage fraud illustrates how widespread the problem has become.

A mortgage industry group says Illinois ranks third in the nation for reports of mortgage fraud.

The study released today by the Mortgage Asset Research Institute shows there was a record number of mortgage fraud incidents last year.

Madigan says her office has filed suits against some of the nation's largest mortgage lenders because of evidence that homeowners are being pushed into unaffordable loans.

Rhode Island made its first appearance as the nation's top fraud hot spot. Number two was Florida.

The study says the number of mortgage fraud reports among loans made last year grew 26 percent from a year earlier.