Mortgage-fraud risk appears to have normalized, as the overall rate of fraud declined in 2014 and there has been a shift to specific fraud types on the local level, according to a new Interthinx report.
Based on an analysis of millions of loan applications, Interthinx said in its yearly Mortgage Fraud Risk Report that of the four types of mortgage risks that it tracks, only one increased in 2014 from 2013. Risk from property valuation increased 17% in 2014. However, the three other categories declined — identity risk, occupancy risk and employment/income risk.
"In no way diminishing the imperative for lenders, servicers and investors to remain vigilant, overall market stabilization does allow our industry to focus on more highly targeted strategies to address specific fraud threats," said Jeff Moyer, chief product and strategy officer at First American Mortgage Solutions, a sister company of Interthinx.
In other findings, Interthinx said that there is less volatility in the real estate market with real estate prices having stabilized. And the riskiest states typically have a weak housing market, with the exception of California.
