CoreLogic: Fraud Risk Rise 'Unprecedented'

The risk that mortgage fraud will have a harmful economic impact in vulnerable markets is rising at an "unprecedented" rate, according to CoreLogic, a Sacramento, Calif.-based provider of fraud prevention technology and services to the mortgage industry.CoreLogic reported that its Core Mortgage Risk Monitor rose 5% in the second quarter after increasing 6.4% in the first quarter. The five major metropolitan statistical areas most at risk, according to the index, are Detroit-Livonia-Dearborn, Mich.; Memphis, Tenn.-Miss.-Ark.; Dayton, Ohio; Akron, Ohio; and Gary, Ind. The index measures collateral risk, which is "the risk associated with the accuracy of a residential property valuation and the sustainability of that valuation over the life of the mortgage due to the unique characteristics of the property, market, and mortgage contract participants," CoreLogic said. The company can be found on the Web at http://www.corelogic.com.