AGOURA HILLS, CALIF., August 21, 2013 — Interthinx, a leading provider of comprehensive risk mitigation solutions for the financial services industry, has released its quarterly interactive Mortgage Fraud Risk Report, covering data collected in the second quarter of 2013.
Overall, the national Mortgage Fraud Risk Index value is 104 this quarter, a 4 percent increase from both last quarter and from one year ago. Among the four fraud categories indexed nationally, identity fraud risk is at 91, up 7 percent since last quarter; property valuation fraud risk is at 105, a 4 percent drop from last quarter; occupancy fraud risk is at 126, up 10 percent from last quarter and up 14 percent from one year ago; and employment/income fraud risk is at 92, a 2 percent increase from last quarter.
Other notable findings in the report include the following:
“Mortgage fraud is a hallmark indicator of other trends,” said Ashley Woodworth, Interthinx vice president of business development and corporate strategy. “For example, traditional fraud hotspots in California, Nevada, and Florida were hardest hit by high rates of default, foreclosure, and underwater borrowers because of widespread fraud in loan originations during last decade”s boom. Furthermore, the dynamic rebound of markets where housing prices are rising shows a corresponding increase in fraud risk. While the market rebound is welcome, this report reminds us that fraud is much easier to commit in a rising market.”
“Our industry has turned the corner as indicated by sustained increases in value, the upward trajectory of interest rates, and a shift toward a purchase market — all positive trends that ironically carry their own set of fraud risks,” added Jeff Moyer, president of Interthinx. “Interthinx tracks fraud nationally and by state, MSA, and ZIP code across distinct categories, allowing mortgage lenders, servicers, and investors to develop risk management strategies that work hand in glove with their other quality control initiatives.”
The Mortgage Fraud Risk Report is an Interthinx information offering created by an internal team of fraud experts. This is the seventeenth time Interthinx has released its quarterly report. The report provides deeper insight into current fraud trends through the analysis of millions of loan applications amassed from the industry”s use of the Interthinx FraudGUARD® loan-level fraud detection tool.
For more information about Interthinx and its Mortgage Fraud Risk Report, visit http://www.Interthinx.com.
Interthinx, a Verisk Analytics (Nasdaq:VRSK) subsidiary, provides essential solutions to mitigate risk in the mortgage and retail lending marketplace. Interthinx offers capabilities in mortgage fraud and verification, property valuation, compliance, quality control, loss mitigation, retail loan loss forecasting, and capital planning that are used by the nation”s top financial institutions. Interthinx helps its clients minimize risk, increase operational efficiencies, satisfy regulator demands, manage data verification, and remain compliant. For more information, visit www.interthinx.com or call 1-800-333-4510.