The risk of mortgage fraud has grown in the past year according to a new report from CoreLogic
The risk of mortgage fraud has grown in the past year according to a new report from CoreLogic.
During the second quarter of 2017 around 13,404 mortgage applications contained indications of fraud - that’s 0.82% of all applications up from 0.7% a year earlier - an annual increase of 16.9%.
“This past year we saw a relatively large increase in the CoreLogic National Mortgage Application Fraud Index,” said Bridget Berg, principal, Fraud Solutions for CoreLogic. “If the factors that influenced the increase continue, including a shift to purchase transactions and growing wholesale channel origination activity, it is likely that mortgage application fraud risk will continue to rise as well.”
New York overtook Florida as the state with the highest level of application fraud risk with the Sunshine State slipping to third place having topped the list for several years.
The greatest year-over-year growth in risk includes Iowa, Indiana, Missouri, Louisiana and Idaho; although all except Louisiana are outside the top 25 in terms of overall risk.
Risk grew most for jumbo refinance loans and occupancy, transaction and income fraud types showed increases year-over-year, with the greatest increase in Occupancy fraud risk at 7.0%.
“Fraud on cash-out refinance transactions and home equity loans may become more of a factor in the coming years as home values and equity rise,” added Berg.
During the second quarter of 2017 around 13,404 mortgage applications contained indications of fraud - that’s 0.82% of all applications up from 0.7% a year earlier - an annual increase of 16.9%.
“This past year we saw a relatively large increase in the CoreLogic National Mortgage Application Fraud Index,” said Bridget Berg, principal, Fraud Solutions for CoreLogic. “If the factors that influenced the increase continue, including a shift to purchase transactions and growing wholesale channel origination activity, it is likely that mortgage application fraud risk will continue to rise as well.”
New York overtook Florida as the state with the highest level of application fraud risk with the Sunshine State slipping to third place having topped the list for several years.
The greatest year-over-year growth in risk includes Iowa, Indiana, Missouri, Louisiana and Idaho; although all except Louisiana are outside the top 25 in terms of overall risk.
Risk grew most for jumbo refinance loans and occupancy, transaction and income fraud types showed increases year-over-year, with the greatest increase in Occupancy fraud risk at 7.0%.
“Fraud on cash-out refinance transactions and home equity loans may become more of a factor in the coming years as home values and equity rise,” added Berg.
