March 3, 2017
The bad news: According to CoreLogic, however, higher loan-to-values in lending, combined with increased purchase dollar-volume could mean a higher fraud risk in 2017. Higher interest rates, combined with continued home appreciation, could help re-ignite the “fraud for housing” schemes.
CoreLogic’s Fraud Index was at 122 in Q4 2016, which matched its highest level from late 2013. The long-term increase in risk levels is related to more risk when it comes to purchase transactions, and a greater share of purchase transactions in the industry, CoreLogic said.
In other news, some of these transactions will be handled by the smaller, non-bank players, as they return to the market. The financial crisis all but decimated these firms. But now they’re back.
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