(NYSE: CLGX), a global property information, analytics and data-enabled
solutions provider, today released its latest Mortgage Fraud Report. The report
shows a 12.4 percent year-over-year increase in fraud risk at the end of the
second quarter, as measured by the CoreLogic Mortgage Application Fraud Risk
The analysis found that during the second quarter of 2018,
an estimated one in 109 applications, or 0.92 percent of all mortgage
applications, contained indications of fraud, compared with the reported one in
122, or 0.82 percent in the second quarter of 2017.
The CoreLogic Mortgage Fraud Report analyzes the collective
level of loan application fraud risk experienced in the mortgage industry each
quarter. CoreLogic develops the index based on residential mortgage loan
applications processed by CoreLogic LoanSafe Fraud Manager™, a predictive
scoring technology. The report includes detailed data for six fraud type
indicators that complement the national
index: identity, income, occupancy, property, transaction and
undisclosed real estate debt.
“This year’s trend continues to show an increase in mortgage
fraud risk year over year,” said Bridget Berg, principal of Fraud Solutions
Strategy for CoreLogic. “Because home prices are rising, and demand is strong,
most mortgage fraud in this type of market is motivated by bona fide borrowers
trying to qualify for a mortgage. Undisclosed real estate liabilities, credit
repair, questionable down payment sources and income falsification are the most
- New York, New Jersey and Florida remain the
top three states for mortgage application fraud risk, maintaining the same
positions as last year.
- All of the top 10 riskiest states showed
increases in risk year over year.
- States with the greatest year-over-year
risk growth include New Mexico, Mississippi, Illinois, Oklahoma and Texas. Of
these, New Mexico, Illinois and Oklahoma now have risk levels greater than the
National Index, which grew from 133 to 149 year-over-year.
- The conforming loans for home purchases
segment shows the greatest risk increase by loan type.
- Income fraud risk had the greatest
increase year over year, followed by occupancy and transaction fraud. Property
and undisclosed real estate debt showed declines in risk.
To view the full CoreLogic Mortgage Fraud Report, visit www.corelogic.com/mortgagefraudreport.