Reduced risk of fraud thanks to a higher volume of refinancing
The CoreLogic Quarterly report on mortgage fraud is a quarterly report that analyzes the major metropolitan areas with the highest risk of mortgage fraud based on the company’s research into trends found in residential mortgage applications processed through its LoanSafe fraud manager.
According to the report, written by Brigitte Berg, Director of Industry Solutions and Property Intelligence, a slight drop in interest rates was enough to push jumbo refinancing volumes to a peak in the third quarter, and overall volumes edged up for both refis and purchases. In the third quarter, purchases accounted for 45.7% of transactions, similar to the second quarter at 46.3%. The slight transition to refinancing and the overall increase in volume probably caused the national index to drop 4.6%.
Overall, mortgage fraud has declined due to an increase in refis, which is considered a lower risk vehicle for fraud.
The most likely place one would encounter mortgage fraud in the United States was in the metropolitan area of Las Vegas-Henderson-Paradise, Nevada (population 2.3 million), where the fraud mark was from 232 in the third quarter, against 250 in the second quarter. or a decrease of 7%.
The benchmark for fraud was set at 100 by CoreLogic in 2010.
Two outliers in the dataset were the areas of McAllen-Edinburg-Mission, Texas (875,200 people) and New Orleans-Metairie, Louisiana (1.27 million people) which each saw an increase. of 17% of the risk of mortgage fraud in the last quarter.
While the report does not indicate which type of mortgage fraud was the most common, it did consider many different forms of fraud.
“There are several types of fraud that can affect a mortgage loan,” the report says. “From occupation fraud, employment fraud and income fraud to real estate fraud, external factors can determine which types of fraud are more prevalent than others. Our latest fraud briefing highlights the top industry trends that are behind specific types of fraud, so you know what to watch out for. “