As Volumes Rose, Appraisal Fraud Up
CHICAGO-Residential originations rose last year and along with it the industry experienced an uptick of 11% in appraisal and valuation fraud, according to LexisNexis Mortgage Asset Research Institute.
The most troubling fraud trends include fake tax returns, and income and application misrepresentation, the company said in its annual fraud report.
Speaking at the Mortgage Bankers Association's National Fraud Issues Conference here, LNMARI noted that Florida is leading the nation in suspected fraud followed by New York and California.
Looking at the national picture, misrepresentation on the loan application is the most common type of fraud at 59%, and 33% of all reported fraud involves appraisal misrepresentation, up from 22% in 2008.
Of the three top states in fraud-Florida, New York and California-Florida had the highest amount of appraisal fraud at 36%. This is up 18% from 2008 loans.