Appraisal Fraud

Inflated appraisals occur when a borrower acts in concordance with an appraiser to provide a lender with a misleading appraisal report.
Reported incidents of Mortgage Fraud in the United States have increased by 45 percent in the second quarter of 2008 when compared to 2007, when appraisal fraud comprised approximately 16 percent of all reported mortgage fraud cases.