CoreLogic released a report showing that an estimate of 12,184 mortgage applications filed for 2015's second quarter has "fraudulent information or serious misinterpretations."
According to 247wallst.com, the estimated number make up the 0.67 percent of the total mortgage applications and is higher than last year's 11,100 applications or 0.69 percent. Over the years, the fraud risk index declined 8.9 percent.
Six information in a mortgage application are being evaluated by the index: occupancy, employment, identity, undisclosed debt and property. The five cities that have the highest fraud risk are "Florida, New York, Hawaii, New Jersey and Nevada" while the cities with highest yearly increase in application fraud risk are Louisiana, Delaware, Hawaii, Pennsylvania and District of Colombia.
An executive in CoreLogic said "Although overall fraud trends are stable to decreasing for most of the country, some geographies warrant scrutiny. One such area is the Miami CBSA [Core-based Statistical Area], which ranks atop the CoreLogic fraud list of metropolitan areas. Of particular concern is that house prices in Miami appear to be overheated, as indicated by the CoreLogic Market Condition indicators. Moreover, house prices in the Miami CBSA have been accelerating at a far greater pace than have rents for single family homes, suggesting that prices may not be a good indicator of sustainable value. This combination of risk facts makes areas like Miami worth paying attention to."
In a report by nationalmortgagenews.com, several information are being inspected thoroughly which can be considered fraudulent if can't be verified. Examples of these information are inconsistent data, income that can't be validated and Social Security numbers that can't be verified. There are also another six cities where risk or fraudulent applications are going u than usual. These cities are Louisville, Dallas, Detroit, Houston, Austin and Oklahoma City.
Several sources of fraudulent information are "lying about income, borrower misrepresents employment information, borrower intentionally misrepresents the market value of the property, and borrowers misrepresent their intentions to occupy the mortgaged property."
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