CoreLogic Report Finds Fraud Risk Down, But Not Gone

Posted by Orb Staff on July 14, 2010 No Comments
Categories : Residential Mortgage

risk in the mortgage industry declined by 25% since it peaked in the third quarter of 2007, according to the newly released ‘2010 Mortgage Fraud Trends Report’ issued by CoreLogic, based in Santa Ana, Calif. ‘Lenders' aggressive stance against fraud is having an impact,’ says Tim Grace, senior vice president of fraud analytics at CoreLogic. ‘But with an estimated $14 billion in fraud losses experienced in 2009 alone, fraud is still a major issue for the mortgage industry. While the industry has done good work there is evidence that fraud patterns are changing and becoming increasingly better hidden.’ The report also found that recognition of mortgage fraud is up, with lenders reporting 55 basis points (bps) of fraud on conforming loans and 122 bps of fraud on Federal Housing Administration loans. Furthermore, nearly one in every 200 short sales were deemed ‘very suspicious’ by lenders, meaning there was a new sale transaction less than 60 days after the short sale and the sale price was more than 20% higher than the short sale price. Short sale volume from first quarter of 2008 through fourth quarter of 2009 increased by more than 300%, according to the report. The full report is available [link=http://www.corelogic.com/fraudindex]online[/link]. SOURCE: Co

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