2014

Mortgage Fraud Index Rises, But Still Low

DALLAS, June 17, 2013 /PRNewswire/ -- Federal, state and local prosecutors picked up the quarterly pace of activity in mortgage fraud cases -- though actions were still low based on standards established since the financial crisis.

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.

Period

Index

Amount

Cases

Q1 2013

880

$1.4 billion

125

Q4 2012

758

$1.3 billion

105

Q1 2012

1151

$1.8 billion

171

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.

State

State

Index

California

107

Florida

93

New Jersey

67

Ohio

63

Pennsylvania

60

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.

Full First-Quarter 2013 Mortgage Fraud Index report:
http://www.MortgageDaily.com/FraudIndex061713.asp?spcode=pr

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

About Mortgage Daily
Founded in 1998 by 20-year mortgage industry veteran Sam Garcia, Mortgage Daily is a leading online source of mortgage news and mortgage statistics. In addition to the Mortgage Fraud Index, Mortgage Daily publishes the weekly Mortgage Market Index and quarterly Mortgage Litigation Index, Mortgage Employment Index and ranking of the biggest lenders and servicers. Visit Mortgage Daily at www.MortgageDaily.com.

CONTACT:
Holly Himelright
214.521.1300
journalists request complimentary full report:
newsalert@MortgageDaily.com

SOURCE Mortgage Daily



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