The Interthinx national mortgage fraud risk index was up 1.4% during the fourth quarter and was 3.6% higher than during the fourth quarter of 2010. The company also notes that although its income/employment fraud risk index was only up 1% since the third quarter, the index has jumped nearly 14% since a year ago and 46% since two years ago.
Arizona overtook Nevada as the nation's ‘riskiest state’ for mortgage fraud during the fourth quarter, while certain parts of the New York tri-state area have moved into the ‘very high risk’ category, due primarily to the increase in property valuation fraud risk.
‘Valuation fraud continues to be a problem for lenders intent on mitigating overall fraud risk,’ says Mark Chapin, chief valuation officer for Interthinx. ‘Lenders must take great care with their collateral valuation process in this environment, as many areas around the country are still experiencing home value declines.’
The full report is now available at the Interthinx website.