3 Fla. Metros in Top 15 for Mortgage Fraud
Buyers feel pressure to lie on mortgage applications as homes become less affordable, and it’s become more prevalent in South Fla., Orlando and Tampa metros.
NEW YORK – Mortgage fraud is on the rise, and it’s worse in some areas. CoreLogic’s Mortgage Fraud Risk Index found an overall 15% increase when comparing the first quarter of 2022 to the first quarter of 2021.
“We may expect to see additional increases in risk behavior as borrowers try to quickly close on their loans ahead of rate increases,” CoreLogic notes in a brief.
Three Florida metros rank in the top 15 worst states for mortgage fraud, according to the index:
- No. 2: Miami-Fort Lauderdale-Pompano Beach, with an index of 253 and year-to-year mortgage-fraud increase of 16%.
- No. 11: Orlando-Kissimmee-Sanford, with an index of 168 and 1% year-to-year increase
- No. 15: Tampa-St. Petersburg-Clearwater, with an index of 161 – but a 7% year-to-year decrease
The top U.S. metro for mortgage fraud, according to CoreLogic, is Poughkeepsie-Newburgh-Middletown, New York, with an index of 253 and a 16% year-to-year increase.
Refinances made up 46% of the loan applications in the first quarter, a falling number. A greater share of the refinance population will be for cash out, which will likely translate into higher fraud risk moving forward, CoreLogic notes in the report’s brief.
Source: “Q1 2022 Quarterly Mortgage Fraud Brief,” CoreLogic (May 16, 2022)
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