NY, CA Trade Top Spots in Mortgage Fraud Index

DALLAS, Dec. 3, 2012 /PRNewswire/ -- The Mortgage Fraud Index was lower, reflecting falling caseloads. But the dollar amount has climbed more than a quarter over the past year. California and New York traded the top-two positions.

The Third Quarter 2012 Mortgage Fraud Index from Mortgage Daily was 1017, falling from 1160 in the second quarter. The latest index was sponsored by PitchPoint Solutions Inc., a provider of mortgage fraud solutions through its FACTiNTEL.

During the same three months in 2011, the index -- which reflects case activity in legal actions where the defendants are accused of using deceit to obtain credit approvals -- was 1170.

The cases were tracked at the mortgage fraud blog FraudBlogger.com. The index reflects both the number of cases and associated loan amounts.

Activity was tracked in 141 cases during the third quarter, falling from the previous period and the third-quarter 2011.

Almost $1.7 billion in estimated loans were associated with tracked cases -- off from three months earlier but a significant increase from a year earlier.

"The Mortgage Fraud Index for the third-quarter 2012 indicates an increase in fraud losses from one year ago," PitchPoint CEO Stephen Schrump said. "Industry feedback indicates mortgage fraud prevention products are uncovering new fraud attempts, but this report and others show the lingering impact of fraud not detected 3-5 years ago.

"We all look forward to seeing the impact of fraud prevention products implemented after the crisis in upcoming reports."

California wrestled the No. 1 position from New York, which moved from the top Q2 spot. California has been among the top-five states each quarter since Q2 2009, while New York has been there each quarter since Q2 2011.

At 193, California's Mortgage Fraud Index was the highest for the second consecutive quarter.  

Full Third-Quarter 2012 Mortgage Fraud Index report:
www.mortgagedaily.com/FraudIndex120312.asp?spcode=pr

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

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SOURCE Mortgage Daily