The risk for mortgage fraud fell 8.9% at the end of the second quarter compared with a year earlier, according to CoreLogic.
New regulations, including the qualified mortgage and the ability-to-repay rules, have had a positive impact on the rate of mortgage fraud, Susan Allen, senior vice president of mortgage analytics at CoreLogic, said in a news release.
“Greater scrutiny…has had a positive impact on the rate of fraudulent applications,” she said.
The total value of mortgage applications that contained fraud or serious misrepresentations fell 12.6% to $17.3 billion at June 30, on a yearly basis, CoreLogic said in its
During the second quarter, about 0.67% of all mortgage applications contained fraud, compared to 0.69% a year earlier.
Florida remained the highest-risk state for mortgage fraud, with New York second. Louisiana had the highest yearly growth in mortgage application fraud risk. Kansas had the fastest rate of decline.
Jumbo mortgages displayed the highest risk of mortgage fraud, followed by low-down payment mortgages.
