Small Increase in Mortgage Fraud Risk

mortgagehome

The Mortgage Application Fraud Risk Index rose by 3.2% from the second quarter of 2013 to the second quarter of 2014. This is revealed in the latest Mortgage Fraud Report compiled by CoreLogic.

The report revealed that in the second quarter of 2014, mortgage applications with value of around $3.3 billion had elements of fraud or serious misrepresentation. During the 12-month period ending in the second quarter of 2014, the total value of applications containing elements of fraud or serious misrepresentation was $19.8 billion.

In the second quarter of 2014, around 11,000 mortgage applications contained elements of fraud, according to the CoreLogic report. This accounted to 0.69% of all applications. For comparison, the approximate number of mortgage applications with elements of fraud in the second quarter of 2013 was 19,700. These applications formed 0.67% of the total volume, which was higher compared to the second quarter of 2014.

Refinance at
Loan Type

Please enable JavaScript for the best experience.

The Senior Vice President of Analytics at CoreLogic, Michael Bradley, commented that the rise in home values resulted in higher home equity and enabled homeowners, who had previously had marginal equity, to buy a different property, refinance or use a home equity line of credit. The number of consumers who could qualify for a loan increased due to the rise in employment and the aging of adverse credit records from the start of the recession. Along with more relaxed credit overlays, these factors led to a moderate expansion of the access to mortgage credit and only a slight increase in the risk of mortgage fraud.

The biggest year-over-year increase in mortgage fraud risk was experienced by Florida. Arizona experienced the largest risk decline from the second quarter of 2013 to the second quarter of 2014. The metropolitan area with the largest increase in risk was Miami-Fort Lauderdale-West Palm Beach in Florida. The metropolitan area with biggest decrease in risk was Phoenix-Mesa-Scottsdale in Arizona.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Facebook Iconfacebook like buttonTwitter Icontwitter follow button