Mortgage Fraud Is on the Rise

According to CoreLogic, the risk of mortgage fraud jumped more than 12 percent year over year at the end of 2018’s second quarter.

The company used six indicators to measure the likeliness of fraud: identity, income, occupancy, property, transaction, and undisclosed real estate debt. CNBC reports that the 12 percent jump now means that an estimated one in every 109 mortgage applications has 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."

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