Refi Boom Helps to Slow Application Fraud

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Posted To: MND NewsWire

The incidence of mortgage application fraud declined in the second quarter according to CoreLogic. The company’s Quarterly Mortgage Fraud Risk Index fell from 152 in the first quarter to 132 and is 11.4 percent lower than the 149 reading in the second quarter of last year. The company said the reason for the change however is not because of an increase in lender vigilance, or borrower ethics for that matter, but rather a function of interest rates. CoreLogic says the fraud rate, which has been stable for a year, was a result of a surge in application volume due to the decline in interest rates. In other words, the fraud fish is swimming in a bigger pool. The change in fraud rates was most evident in refinancing which increased from a 32 percent share of applications in the first quarter to…(read more)

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