Mortgage fraud is on the uptick
Misrepresentation is on the rise in the home buying arena, according to recent information from Core Logic and others keeping track of mortgages. The risk in that area increased by 16.9 percent based on the most recent 12-month period tracked by the data analytics firm that goes on to report that fraud was detected in one of every 122 mortgage applications during the first two quarters of 2017
Top on the uptick is “occupancy” fraud with potential homebuyers lying about whether they intend to live in a house themselves or offer it for rent, says an article in the Washington Post: “Applicants who promise to live in the property generally qualify for lower interest rates and down payments; investors in rental homes get charged more.”
“Among the varied types of fraud tracked by Berg’s company were misrepresentations on the sources of down-payment money as well as on income amounts and employment; undisclosed debts; and games played with appraisals.” Read the full article here.