Florida led the nation in mortgage fraud in 2007, a dubious distinction it’s had two years running.

The competition to be first in fraud is getting stiffer as the housing downturn persists and agencies nationwide report more suspect mortgages, according to industry data released Thursday.

Nevada ranked second in mortgage fraud, up from No. 6 a year earlier in the Mortgage Asset Research Institute’s annual report on fraudulent mortgage activity. It was followed by Michigan, California, Utah and Georgia. Virginia made its debut on the report’s top 10 list, coming in at No. 7.

The report, released at a Mortgage Bankers Association conference in Chicago, did not detail the exact number of fraud cases by state or nationwide. Instead, the group calculated a “fraud index” by comparing fraud reports with the number of home loans made in each state.

It cited FBI statistics showing 46,700 mortgage fraud reports in 2007, a more than 30 percent increase from the year before and twice as many than in 2000. Federally insured lenders are required to report fraud to the government.

Mortgage fraud has represented about $1 billion in losses over the past decade…

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