U.S. home prices are rising very quickly, and so is fraud to obtain mortgages to buy homes. The CoreLogic National Mortgage Application Fraud Risk Index made a big jump Q1 2021. The rapid increase of the index means more red flags are being found in the application process. Hot markets with a sudden surge in sales, also happened to top the list for the highest risk of fraud growth.
CoreLogic Mortgage Fraud Index
Signs of mortgage fraud risk are surging according to the mega property-tech firm. The Index reached 122.9 in Q1 2021, up 11.9% from the previous quarter. Compared to the same quarter a year before, this number was 7.7% higher. It’s a very sharp increase for such a short period of time.
Las Vegas and Miami Real Estate Top The Fraud Risk Index
Statistical regions with the highest fraud risk were Las Vegas, Poughkeepsie, and Miami. Las Vegas had the highest score with an index reading of 220 for Q1 2021, up 25% from the…