The risk of employment and income-related mortgage fraud rose nearly 9% in the third quarter compared to a year ago, and is up almost 50% from 2009, according to a new report from Interthinx.
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The increasing trend in this category of residential fraud is due to borrower income and/or employment figures being misrepresented in order to meet debt-to-income thresholds required by lenders.
For all categories of fraud, the states with the worst performance continue to be Nevada and Arizona. In third place is California.
The three riskiest MSAs are Stockton, Bakersfield and Modesto, all in California, followed by Las Vegas and Phoenix.
At the other end of the scale, the states with the lowest risk of mortgage fraud include Kansas, Alaska and Maine.
