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CoreLogic Finds Mortgage Fraud Returning, Locus Shifting
Monday, December 14, 2015
Could mortgage fraud be coming back? According to Bret Fortenberry, writing in
CoreLogic's Insights blog, there are
indications the incidence is rising.
Fortenberry says the housing industry professionals agree that
origination fraud peaked between 2005 and 2008, a period that offered
unprecedented opportunities to manipulate the system. The increase regulation, improved controls,
and tightened lending standards that followed strongly reversed the trend and
fraud rates have been very low in the last several years.
Looking toward 2016 however Fortenberry says that it is
likely the loosening credit guidelines and a recovery of the purchase mortgage
market will again return some of the opportunities and motivation for
fraud. One possibility is that inflated
home prices will be used to cover misrepresentation of down payments.
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