Earlier this week, we did a posting on mortgage fraud being on the rise. As it stands, the report showed a 3.9% year-over-year increase in fraud risk, as of the end of the second quarter of 2016. CoreLogic’s Mortgage Fraud Report analyzes the collective level of loan application fraud risk the mortgage industry is experiencing each quarter.
However, what is most noteworthy about the report is the loan type that is showing the greatest fraud risk increase is high-LTV purchase loans.
Nearly two years ago, Fannie Mae and Freddie Mac introduced 3% down mortgages, which have made their way into both big and small lender offerings since then, with some even offering as low as 1% down offerings.
The new low down payment programs were launched as a way to extend credit opportunities for first time home buyers since the access to credit tightened significantly after the financial crisis. But as the credit box loosens, the risk of mortgage fraud heightens, as seen in the report.
A balance is definitely needed. If current trends of higher LTV purchases and increased credit availability continue, mortgage fraud will likely rise over the next few years.
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 website at www.miamibankruptcy.com.