5-Year Low for Mortgage Fraud Index

DALLAS, April 8, 2013 /PRNewswire/ -- The holidays took a toll on mortgage fraud prosecutions as the Q4-2012 Mortgage Fraud Index sank to its lowest level in nearly five years. However, the drop appears to have only been temporary. California saw a big improvement, while the dollar volume in Florida spiked.

It was the fewest number of cases tracked since at least 2007, while the dollar amount hasn't been this low since the first-quarter 2011.

The Mortgage Fraud Index, itself, was 758 in the fourth quarter -- its lowest showing since the first-quarter 2008.

But the decline in activity appears only to be temporary, according to Mortgage Daily Founder and Publisher Sam Garcia.

"Preliminary data indicates that mortgage fraud case activity during the first quarter of this year was up around 25 percent from the fourth quarter," he said.

The Mortgage Fraud Index factors in both the number of cases and the estimated amount of loans associated with each case.

While SARs and other fraud risk measures focus on fraud that might have happened or could happen -- the Mortgage Fraud Index reflects proven cases of fraud.

Based on the dollar amount of loans involved, Florida -- which wasn't even ranked among the five-worst during the third quarter -- ascended to the top spot.

California tied Florida for the highest state index, though California's index slid from the third quarter, when the state ranked No. 1.

Full Fourth-Quarter 2012 Mortgage Fraud Index report: www.MortgageDaily.com/FraudIndex040713.asp?spcode=pr

Mortgage Fraud News:
http://www.mortgagedaily.com/MortgageFraud.asp?spcode=pr

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SOURCE Mortgage Daily