Mortgage Fraud Index Rises, But Still Low

Mortgage Fraud Index Rises, But Still Low

At 880, the Mortgage Fraud Index for the first quarter increased 16% from the fourth quarter. The index reflects prosecution activity in cases where defendants are accused of deceiving mortgage lenders.

The index has tumbled by nearly a quarter from the same period during 2012. In addition, since the second-quarter 2008, the Mortgage Fraud Index has only been lower two times.

Activity was tracked on 125 mortgage fraud cases, climbing 19% from the previous period but retreating 27% from the first-quarter 2012.

The dollar amount of home loans involved in first-quarter activity was $1.4 billion, rising from the final three months of last year. Dollar volume has declined, however, from the first three months of last year.

A preliminary review of second-quarter data indicates that the Mortgage Fraud Index is likely to hold at first-quarter levels.

The highest state index was in California: 107. The Golden State moved up from the second spot in the prior period.

Florida’s index slipped to No. 2 from No. 1.

The cumulative total for all state indices equals the national index.

Based on the dollar amount of mortgages involved, Pennsylvania’s $226 million was the highest of all states. Pennsylvania was impacted by a huge $100 million case involving more than a dozen defendants.

California, which regularly ranks among the top few in the dollar category, landed the No. 2 position, followed by Florida.