S&P says underestimated extent of mortgage fraud

MUMBAI (Reuters) - The chief economist of Standard and Poor's said on Tuesday that the ratings agency had underestimated the extent of fraud in the U.S. mortgage industry.

"We underestimated the extent to which fraud was occurring in the industry," David Wyss, S&P's chief economist, said at a news conference in Mumbai.

"It looks, based on some surveys that had been done, the extent of frauds increased sharply in 2006."