Mortgage fraud is on the rise, and it’s worse in some areas. CoreLogic’s Mortgage Fraud Risk Index showed a 15% increase from the first quarter of 2021 to the first quarter of this year.
“We may expect to see additional increases in risk behavior as borrowers try to quickly close on their loans ahead of rate increases,” CoreLogic notes in a brief.
Refinances made up 46% of the loan applications in the first quarter, a falling number. A greater share of the refinance population will be for cash out, which will likely translate into higher fraud risk moving forward, CoreLogic notes in its brief.