The Interthinx® F.R.A.U.D. Report

Combating mortgage fraud is a priority, because mortgage lending and the housing market have a significant effect on the nation’s economy. The FBI estimates that mortgage fraud could conceivably account for more than $10 billion in bad loans. This report describes the top ten “hot spots” (states) for mortgage fraud for second-quarter 2009.

Challenge
The mortgage industry encounters fraud every day. Combating mortgage fraud is a priority, because mortgage lending and the housing market have a significant effect on the nation’s economy. Each mortgage fraud scheme contains some type of misstatement, misrepresentation, or omission that underwriters and lenders need to know to fund, purchase, or insure a loan. The FBI estimates that mortgage fraud could conceivably account for more than $10 billion in bad loans. You can use Interthinx products at every point in the mortgage life cycle to assess and mitigate risk. This report describes the top ten “hot spots” (states) for mortgage fraud for second-quarter 2009.

Results
The report highlights the rate of possible misrepresentations in six categories across the ten states: employment/income, identity, occupancy, straw buyer, property valuation, and property flipping.

Technique
Interthinx derived the top ten states from an analysis of all loan application data submitted to our fraud detection and prevention tools in 2009.

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