Loan Fraud Declines as Lenders Recognize Risks
An aggressive stand against fraud by lenders is having an impact according to a new study, but attempted fraud is still a problem in a significant percentage of loan applications and the nature of the fraud itself is changing. The 2010 Mortgage Fraud Trends Report released today by CoreLogic is based on a proprietary predictive fraud model developed by the company which uses pattern recognition to determine a level of risk each quarter. The model produces a Fraud Index from a representative sample of 80 million loan applications spanning the years from 2005 to 2009. According to the report, fraud risk in the mortgage industry is down 25 percent since its peak in the third quarter of 2007 . Still, there are significant trends in mortgage fraud types and loan performance but, the study found…(read more)
