MortgageFraud

March 3, 2017 Comments Off on Risky Business: Eyeing More Fraud in 2017 Views: 416 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

For comments, questions or concerns, please contact Amy Sorter

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