It’s amazing. You get a little bit of speculative mania back, combined with government programs that help people avoid paying a down payment, and just like that mortage fraud is back on the rise. As home prices may or may not be turning around, no doubt this is contributing to the upside, at least a little.
HousingWire: Fraud risk in the mortgage industry surged more than 11% from Q209 to Q309, according to a mortgage fraud risk index compiled by Agoura Hills, Calif.-based mortgage software developer Interthinx.
The index comprises several common types of mortgage fraud.
The Property Valuation Fraud Risk Index is up 25% from the previous quarter and up 46% from the year-ago quarter, indicating a shift toward fraudulent schemes involving short sales, real estate-owned inventories and refinancings by borrowers with equity impaired by falling property values. Read the whole thing >
As you can see by the map, too, it’s in all the same areas again.