Georgia tops the nation in mortgage fraud schemes [Savannah Now].  This article requires free registration but is an interesting narrative on what is happening.
Here are the top 10 states reporting mortgage fraud activity as it relates to their real estate activity, according to the Mortgage Asset Research Institute. 
What is so surprising about the statistics is that the coasts such as in California and the northeast where prices are higher and more volatile, are not in the top ten. In the past, they have been the primary areas for mortgage fraud: