The risk of fraud in mortgage applications increased in the second quarter, rising to a score of 133 on CoreLogic’s National Mortgage Application Fraud Risk Index.
That’s up from a score of 132 in the first quarter and up sharply from a score of 113 in the second quarter of 2016.
About 66% of applications in the second quarter were for purchases, up from 60% in the first quarter, according to the report.
In general, the risk of fraud increases as purchase share increases – however, total volume is also a consideration. Purchase applications are more prone to fraud compared with refinances, mainly because certain borrower data is being submitted and verified for the first time.
For more, including a breakdown of application fraud risk by MSA, click here.