An increase in mortgage demand brings with it an increase in fraud risk, according to CoreLogic. Analyzing only the data on purchase applications, from Q2 2016 to Q2 2017, the proportion of purchase transactions within the group increased from 55% to 66% of applications.
As a whole, during the second quarter of 2017, an estimated 13,404 mortgage applications or 0.82% of all mortgage applications contained fraud. This is compared to the second quarter of 2016 when mortgage application fraud was found on 12,718 applications, or 0.7% of all applications.
So where is the increase in fraud risk mainly coming from? CoreLogic identified the top three mortgage fraud indicators that are on the rise.
- Occupancy fraud risk
CoreLogic identified this as the No. 1 fraud risk. Occupancy fraud occurs when the mortgage applicant deliberately misrepresents their intended use of the property (i.e. – primary residence, secondary residence, or investment property). From the second quarter of 2016 to the second quarter of 2017, the occupancy- fraud indicator grew 7%.
- Transaction fraud risk
Transaction fraud risk increased 3.9% when compared to the same quarter last year. This type of fraud occurs when the nature of the transaction is misrepresented, such as undisclosed agreements between parties and falsified down payments.
- Income risk fraud
Income fraud rounded out the top three and includes misrepresentation of the existence, continuance, source, or amount of income used to qualify for a mortgage.
Click here to read more on this story.
Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.