Interthinx has unveiled a new quarterly report that includes an analysis of the state of mortgage fraud nationally, as well as indices for the four most common types of mortgage fraud. Reportedly, the Interthinx Mortgage Fraud Risk Report (IMFRR) provides analysis and information on the state of mortgage industry that has not previously been available.
The report covers the second quarter of 2009. Major findings include the following: fraud risk (valuation fraud) occurs in any market with pricing volatility, whether home prices are rising or falling; fraud risk is a leading indicator of foreclosure risk, which suggests that the nation’s hottest fraud spots today are likely to be the leading foreclosure Metropolitan Statistical Areas (MSAs) within two years.
Interthinx analysts expect that fraud indices will continue to rise over the next three years as a large number of adjustable rate mortgage loans — especially option Adjustable Rate Mortgages (ARMs negative amortization) — reset between now and the first quarter of 2012. The national fraud index is now 130 (n= 100), a 7% increase from the second quarter of 2008.
Kevin Coop, president of Interthinx, said: The industry is well aware that mortgage fraud is a growing problem. But before this report was available, there was no easy way to tell precisely where it was increasing at the greatest rate. The professional team we now have in place gives us the ability to develop very granular detail to shed light on a serious area of concern and provide actionable information for our customers.
