Affinity Cites High-Fraud States

The four states that have consistently recorded higher "Fraud Index" levels over several quarters are California, Georgia, Missouri, and Nevada, according to a report on mortgage fraud by Affinity Corp., West Hills, Calif.The 2002 Fourth Quarter National Fraud Report found that Oregon, Wyoming, Texas, Minnesota, Ohio, New Jersey, and Vermont were also among the states with the highest levels of fraudulent activities during the last three months of the year. Among the states that scored best during the fourth quarter are New York, Pennsylvania, Virginia, Kentucky, Indiana, Alabama, Arkansas, Iowa, North Dakota, and Montana. Overall, Affinity said, the national fraud scores improved from the third to the fourth quarter. The index is supposed to be a predictive indicator of mortgage fraud, as it is based upon data from the nation's most recent loan applications.