Real Estate Mortgage Fraud -
• California is no longer worst in nation
• Property valuation fraud sees uptick
The overall mortgage fraud risk in the United States in the first quarter of the year increased by 4 percent from the previous quarter and by 11 percent from the same quarter a year ago, according to Interthinx Inc., an Agoura Hills seller of risk mitigation and regulatory compliance tools for the financial services industry.
Major findings include:
• Arizona has surpassed California as the state with the highest Mortgage fraud risk, possibly because of a migration from neighboring Nevada similar to that which occurred in 2004 to 2006. Nevada remains in second place with California, Florida, and Michigan rounding out the top five states for Real Estate Mortgage fraud.
•Real Estate Occupancy fraud risk is down by 11 percent, a sharp reversal from the previous quarter’s rise of 16 percent. Still it is likely that fueled by plentiful inventories and the expected release of “shadow” foreclosure inventory, this index will trend upward in the near future, says Interthinx.
