Mortgage fraud on the rise in U.S.

Mortgage fraud on the rise in U.S.

Mortgage fraud on the rise in U.S.
Cases of mortgage fraud are on the rise in U.S. as lenders grapple with limited capabilities during the coronavirus pandemic. For the 12 months ending mid-2020, CoreLogic’s newly released Mortgage Fraud Trends Report shows that there was a 74 percent jump in fraud risk in buyers of investment properties.

Scammers of investment properties tend to be higher than those purchasing a home for personal use.

“Investment loan applications are showing a higher risk because real estate investors have a profit motivation for their activity,” said Bridget Berg, principal of fraud solutions for CoreLogic. “Investors often own other real estate and are more likely to have undisclosed ownership and transactions in process.”

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.