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32 n November/December 2010 to direct losses to lenders and investors that buy mortgage assets. Communities in which fraud-affected properties are situated incur substantial losses, including depreciation of nearby homes and increased crime. The downturn in the domestic housing sales market from its peak in 2007 has perhaps made mortgage fraud more difficult to accomplish, but mortgage fraud rates have not declined. In fact, the distress in the U.S. housing sales market has proven to be fertile...