Report: subprime fraud high in New York

The New York State Commission of Investigation reports that mortgage scammers took advantage of loopholes in the state’s lending laws to defraud homeowners and lending institutions. The report links subprime loans with New York’s spike in foreclosures. In 2007, 59 percent of foreclosures statewide involved subprime loans, and New York had the eighth highest number of foreclosures in the country.