A quarterly index that measures the likelihood of losses from mortgage fraud rose again.
The Core Mortgage Risk Monitor was up 5 percent during the second quarter from the prior period, indicating “the risk of mortgage fraud causing economic impact in vulnerable markets continues to rise at an unprecedented rate,” CoreLogic announced Monday. The index, which forecasts geographic “hot spots” most likely to be hurt by increased fraud over the next 12 – 18 months, was 6 percent higher during the first quarter.
Detroit was the major metropolitan area most at risk, CoreLogic said. Next was Memphis, Tenn., followed by Dayton, Ohio. Topping out the list was Akron, Ohio, and Gary, Ind., which respectively held spots No. 4 and No. 5.
Detroit and Gary also ranked in the top five markets showing the biggest risk increase from the first quarter, according to the statement. That list also included Goldsboro, N.C., Flint, Mich., and Florence, S.C.
“CoreLogic calculates accurate, localized predictions of areas with a high likelihood of residential loan performance issues leading to negative economic consequences for the community,” said CoreLogic Chief Economist Mark Fleming in the announcement. “This data helps us understand the future risk landscape so that we can provide lenders and borrowers with valuable information to protect them from fraudulent loans.”
