March 3, 2017 Comments Off on Risky Business: Eyeing More Fraud in 2017 Views: 528 Connect Classroom, National News

Risky Business: Eyeing More Fraud in 2017

The good news: Mortgage fraud has been lower, since stronger lending controls were put into place in the aftermath of the financial meltdown.

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.

Read More at CoreLogic

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