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Mortgage Fraud Climbing High In 2Q2018!

Started by Sam, October 04, 2018, 08:01:49 AM

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Sam

From CNBC:

Mortgage fraud risk jumped more than 12 percent year over year at the end of the second quarter, according to CoreLogic, which measures six fraud indicators: identity, income, occupancy, property, transaction and undisclosed real estate debt. One in every 109 mortgage applications is estimated to have indications of fraud.

"Because home prices are rising, and demand is strong, most mortgage fraud in this type of market is motivated by bona fide borrowers trying to qualify for a mortgage," said Bridget Berg, principal of fraud solutions strategy for CoreLogic. "Undisclosed real estate liabilities, credit repair, questionable down payment sources and income falsification are the most likely misrepresentations."


Now that the 10-year bond yield has reached 3.2%, surely housing prices will continue to slow down. Watch out folks.

Sam

Regards,

Sam

Orphan

 Sam,
I wonder where they get home prices are rising. That does not seem to be case as of the last 60 days...?

RandyP

Quote from: Orphan on October 04, 2018, 09:21:38 AM
Sam,
I wonder where they get home prices are rising. That does not seem to be case as of the last 60 days...?
It appears the report is using data from the second quarter, so it doesn't capture any slowdown in the fall.

deific

Any AirBnb, rental situation without the appropriate mortgage product is fraud is it not? A typical conventional loan you take out on your property is not supposed to be used if the property is going to be rented out in any way.