Mortgage fraud is more likely to have an economic impact on vulnerable markets, according to an index that measures collateral risk.
The latest Core Mortgage Risk Monitor index rose by 5% during the second quarter, after increasing by 6.4% within the first quarter, CoreLogic reported.
The increase in the index, which measures collateral risk, “indicates that the risk of mortgage fraud causing economic impact in vulnerable markets continues to rise at an unprecedented rate,” the Sacramento, Calif.-based provider of collateral risk-analysis and management technology and services said.
Gary, Ind., showed the most noticeable increase quarter over quarter, followed by the Detroit-Livonia-Dearborn area in Michigan, Goldsboro, N.C., Flint, Mich., and Florence, S.C., according to the latest data from CoreLogic.
The Detroit-Livonia-Dearborn made its debut in and led the list of the top five “housing hot spots” most likely to experience the economic consequences of increased fraudulent activity over the next 12 to 18 months, the report indicated. Memphis moved up one spot from the last period to No. 2. Dayton, Ohio reentered the top five at No. 3, followed by Akron, Ohio, which fell two spots from the prior period, and Gary, which also made its debut on the list.
