A picture of a document titled "MORTGAGE FRAUD" with a judge's gavel partially in frame on top of it.

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Where Mortgage Fraud Is Highest

May 17, 2022

Mortgage fraud is on the rise, and it’s worse in some areas. CoreLogic’s Mortgage Fraud Risk Index showed a 15% increase from the first quarter of 2021 to the first quarter of this year.

“We may expect to see additional increases in risk behavior as borrowers try to quickly close on their loans ahead of rate increases,” CoreLogic notes in a brief.

Refinances made up 46% of the loan applications in the first quarter, a falling number. A greater share of the refinance population will be for cash out, which will likely translate into higher fraud risk moving forward, CoreLogic notes in its brief.

A chart listing the current highest fraud-risk metros.

 

Source: 
Q1 2022 Quarterly Mortgage Fraud Brief,” CoreLogic (May 16, 2022)