The 10 markets most at risk of foreclosure because of mortgage fraud are all in the Midwest.
Those were the findings announced today from First American CoreLogic.
The second quarter Core Mortgage Risk Monitor economic index, which examined 379 U.S. markets representing 89 percent of the population, forecasts mortgage delinquency based on fraud propensity, collateral risk, home price dynamics and the health of the local economy, the report said.
Of the 100 largest metropolitan markets, the five markets most at risk were Detroit-Livonia-Dearborn, Mich.; Memphis, Tenn.; Warren-Troy-Farmington Hills, Mich.; Youngstown-Warren-Boardman, Ohio-Pa.; and Dayton, Ohio, according to the data. Making the top 10 list were Cleveland and Indiananpolis.
Phoenix-Mesa-Scottsdale, Ariz., four Florida markets and Salt Lake City were all among the 10 lowest risk markets, the report said.
First American said the quarterly risk index had been steadily increasing, but the latest numbers — driven by home price moderation, a healthy economy and moderating fraud — showed signs of stabilization.
The Fraud and Collateral risk index has reached its highest level in recent years but is stabilizing, according to the report.
The foreclosure risk index, however, jumped 10.5 percent from the prior quarter, the statement said. Subprime delinquency was responsible for the jump.
“The Foreclosure Index is expected to continue rising despite relatively unchanged employment conditions and a stabilization of house prices,” the report said.
