- Mortgage Fraud on the Rise
Mortgage Fraud on the Rise
According to a report by CoreLogic, lenders are reporting increased levels of fraud as the fraud artists migrate toward higher risk, high volume loan programs. These include those offered by the Fair Housing Administration (FHA), Home Affordable Refinance Program (HARP) as well as short sales and real estate owned (REO) sales. We've all heard or read stories on mortgage fraud and it doesn't seem to be slowing down, in fact, mortgage fraud is on the rise. It's up 20% since the lowest rate back in 2009. The mortgage industry has taken steps to stop these frauds from happening, but there are always new frauds emerging these days. "Despite increased fraud activity during 2010, the industry has made substantial progress in curbing fraud from the levels it reached during the height of the market in 2007. Fraud continues to shift to areas of the lending business where large volume increases occur over short periods of time, or where advanced risk mitigation processes are not squarely in place," said Tim Grace, senior vice president of Fraud Solutions at CoreLogic.
Findings about Mortgage Fraud
Through findings from CoreLogic and their predictive analytics to analyze fraud, seems like the peak for the mortgage fraud started back in 2006 at a rate of 109, then it slowed down in 2009 at a rate of 68 and as the second quarter indicates seems to be going up at a rate of 82. Mortgage fraud is still down from its peak back in 2006, but we are seeing some increase in lending frauds. CoreLogic found increased lending through FHA and HARP loan programs accounted for most of the increased risk in 2009 and 2010. All this reporting on mortgage frauds shouldn't discourage you from buying. There will always be new frauds out there. Simply make sure you know your lender and trust them. If something sounds too good to be true, then it probably is. We're in a buyer's market right now and if you're wondering whether you should make that purchase of a new home, then the answer is a simple yes. Sellers are lowering their prices everywhere because they don't want to keep their homes listed for too long, this means that the buyers have the upper hand. If you're purchasing a property in the Birmingham area, don't forget to call the local Birmingham movers
to help you move. They will quilt pad wrap all of your belongings so they won't ever get damaged. All My Sons of Birmingham is licensed and insured. It’s staffed with professional movers so you know that you have chosen wisely with the Birmingham moving specialists.