Mortgage Fraudsters Are Flooding These 10 Markets

Dated: March 6 2014

Views: 381

Mortgage fraud is growing at an alarming rate according to credit verification provider Kroll Factual Data.
It's particularly bad news considering increased compliance requirements from the Consumer Financial Protection Bureau related to the Qualified Mortgage regulation this month.
Do borrowers need to fib more on loan applications in order to get through the tightened underwriting process? Maybe, according to the Kroll report.
“Even with indications of the U.S. economy and the housing market gaining strength, we are seeing the threat of misrepresentation in mortgage applications rising,” said Rod Bazzani, President, Kroll Factual Data. “The call for increased vigilance and processes for mitigating this risk is at a pitch not to be discounted or ignored."
Kroll notes the potential for mortgage fraud has increased more than 10% nationally — the third consecutive quarter of increases.
Additionally, there are ten markets were mortgage fraud is likely to increase at a rate much greater than the nation average.
Using its proprietary risk analysis and verification engines, Kroll Factual Data isolated certain files that may contain indicators of potential mortgage origination fraud and examined at least 1,000 loan applications for each market.
They found mortgage fraudsters are more likely to be seen in these 10 markets, ranked in order from 10th to 1st by percentage increase in possible fraudulent activity:

10:
Oshkosh, WI  (25.37% increase)

9: Duluth-Superior, MN-WI (26.18%)

8:
Portland, OR (26.35%)

7: Wilmington, DE (27.43%)
6: Philadelphia, RA (29.24%)
5: Boulder, CO (32.29%)
4: Santa Fe, NM (37.47%)
3: Manchester, NH (40.95%)
2: Fort Collins-Loveland, CO (51.42%)
1: Huntsville, AL (55.39%)

Source
RC
Blog author image

Mark Ross

For Mark Ross, founder of Ross NW Real Estate and professional real estate broker, real estate has always been the career of choice. During his 25+ years in the industry, Mark has gained experience in....

Latest Blog Posts

Will We Have A Buyers Housing Market In 2021

If you’re looking to buy a home, you’ll stand the best chance in a buyer’s housing market, where listings are flush, demand is low and buyers have the upper hand — not to mention most of the

Read More

What To Budget For Closing Costs When Buying A House

Are you considering purchasing a home for the first time? Then you’re probably already saving money for your down payment. But what about all the other costs needed to complete the transaction?

Read More

Organize Your Home In A Month In Less Than An Hour A Day

A super-easy plan for getting organized without adding to your home-is-school, home-is-work, home-is-everything time burden.Did you ever notice that your self-improvement pacts with yourself are

Read More

5 Tasks Every Homeowner Should Do In January

Start looking for that contractor NOW if you want your project done by summer’s end.Whew. The holidays are done. The new year has rung in.That's when smart homeowners know it's time to do these

Read More