During the first quarter of 2009, it is estimated that there were 1,427 fraud cases in the United States, with a dollar amount of just over one and a half billion dollars.  This represented a slight dip from the fourth quarter of 2008, when the dollar value was nearly two and a half billion dollars.

Utah was the highest state with open mortgage fraud cases. The second highest state was Texas, followed closely by Florida, Pennsylvania and Minnesota.

Mortgage fraud can take a number of different forms. For example, one case involved a California broker that originated more than $1 billion in fraudulent home loans in six states. This particular individual was apprehended trying to get into Canada. He had more than $70,000 in cash stuffed into his boots at the time.

Another broker in California used fraudulent social security numbers. As it turns out, he borrowed the social security numbers of 25 children to originate fraudulent home loans.

A woman in Maryland was responsible for around $30 million in fraudulent home loans. Among other things, she held an $800,000 wedding, with Patti LaBelle headlining.

Some cases are much smaller in their scope. A bank vice president from Minnesota forged her husband’s name on a $200,000 home loan, for example.

Many other cases seem to involve family members, too. A Texas woman originated $3 million in fake loans, aided by her husband, sister and daughter. She was sentenced to 99 years in prison.

The FDIC has investigated mortgage fraud and come up with some interesting situations, as well. One straw buyer recently was handed $10,000 in cash after closing on a home loan from IndyMac.

By definition, mortgage fraud can fall into one of several categories. Here are some of the most common:

• Undisclosed kickbacks. If you get a monetary benefit that the lender doesn’t know about and that isn’t disclosed in the loan agreement, it’s mortgage fraud.
• Falsifying employment income. Stated income loans are hard to verify, and giving false numbers constitutes mortgage fraud.
• Non-owner claiming occupancy. When you occupy a home, you get better interest rates. Not living in the home would be mortgage fraud.

There are many other common types of mortgage fraud, as well. If you suspect mortgage fraud, you should report the suspicious activity to the FBI.