5-Year Low for Mortgage Fraud Index

DALLAS, April 8, 2013 /PRNewswire/ -- The holidays took a toll on mortgage fraud prosecutions as the Q4-2012 Mortgage Fraud Index sank to its lowest level in nearly five years. However, the drop appears to have only been temporary. California saw a big improvement, while the dollar volume in Florida spiked.

Mortgage Daily tracked activity on 105 mortgage fraud cases for $1.3 billion during the fourth quarter. The actions are chronicled at the mortgage fraud blog FraudBlogger.com and represent activity on mostly criminal cases filed in local, state and federal courts.

It was the fewest number of cases tracked since at least 2007, while the dollar amount hasn't been this low since the first-quarter 2011.

Activity fell from 141 cases for $1.7 billion three months earlier and 171 cases for $1.8 billion a year earlier.

The Mortgage Fraud Index, itself, was 758 in the fourth quarter -- its lowest showing since the first-quarter 2008.

Index by Quarter





Period

Index

Level

Amount

# Cases

Q4 2012

758

$1,254,832,325

105

Q3 2012

1017

$1,682,800,448

141

Q4 2011

1141

$1,751,550,050

171

But the decline in activity appears only to be temporary, according to Mortgage Daily Founder and Publisher Sam Garcia.

"Preliminary data indicates that mortgage fraud case activity during the first quarter of this year was up around 25 percent from the fourth quarter," he said.

The Mortgage Fraud Index factors in both the number of cases and the estimated amount of loans associated with each case.

While SARs and other fraud risk measures focus on fraud that might have happened or could happen -- the Mortgage Fraud Index reflects proven cases of fraud.

Based on the dollar amount of loans involved, Florida -- which wasn't even ranked among the five-worst during the third quarter -- ascended to the top spot.

California tied Florida for the highest state index, though California's index slid from the third quarter, when the state ranked No. 1.

Top States by Total Amount




State

State

Index

Amount

Florida

97

$246,873,472

California

97

$194,255,388

Texas

63

$122,275,688

New York

40

$101,100,000

Arizona

43

$81,000,000

Full Fourth-Quarter 2012 Mortgage Fraud Index report: www.MortgageDaily.com/FraudIndex040713.asp?spcode=pr

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

About Mortgage Daily
Founded in 1998, Mortgage Daily is a leading source of mortgage news, mortgage statistics and analysis for the mortgage industry. Visit us at http://www.MortgageDaily.com.

CONTACT:
Holly Himelright
NewsAlert@MortgageDaily.com
214.521.1300  

 

SOURCE Mortgage Daily



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