The scope of mortgage fraud
BasePoint Analytics LLC, a recognized fraud analytics and consulting firm, analyzed over 3 million loans originated between 1997 and 2006 (the majority being 2005-2006 vintage), including 16,000 examples of non-performing loans that had evidence of fraudulent misrepresentation in the original applications. Their research found that as much as 70% of early payment default loans contained fraud misrepresentations on the application.
That is from a Fitch Ratings report (summary here, with an eventual link to buy it), the rest makes for very gory reading as well. Thanks to a loyal MR reader for the copy of this report.