The probable rate of mortgage fraud on loans written in 2010 increased 20% as the amount of loans originated continues to fall, according to data analytics firm CoreLogic (CLGX). The CoreLogic Fraud Index estimates losses on loans due to fraud will drop to $11 billion in 2010, down 21% from the $14 billion reported in 2009. It’s the lowest amount of losses since 2006 when CoreLogic found nearly $30 billion lost on mortgages written to much more lenient underwriting standards. But even though losses have dropped by dollar amount, the rate of fraud became more prominent due to higher-risk government loan programs, according to CoreLogic. Actual fraud losses are lower because the origination market is down 26% from a year ago. Lenders filed more than 35,000 suspicious activity reports on questionable loans during the first half of 2010. That’s up 7% from the same period a year before, according to the Financial Crimes Enforcement Network. In December, FinCEN proposed a new requirement forcing nonbank residential mortgage lenders to begin filing the reports. Write to Jon Prior.
CoreLogic sees mortgage fraud rate on the rise as origination volume drops
Most Popular Articles
Latest Articles
CoStar Group finds success through the sale of Homes.com memberships
The company boosted its revenue by 12% year over year in Q1 2024