CoreLogic: Mortgage Application Fraud Risk Index Up 8.3% in Q2

(Image courtesy of CoreLogic)

CoreLogic, Irvine, Calif., released its latest fraud report, finding that its Mortgage Application Fraud Risk Index increased 8.3% year-over-year in the second quarter and 1.1% from the first quarter.

One in 123 mortgage applications (or .81%) were estimated to have indications of fraud in the quarter–broken down by type, that includes one in 111 purchase applications and one in 171 refinance applications.

Within purchase transactions, the segments that showed the most significant risk increases were investment purchases and investment refinances (up 11%), FHA purchases and jumbo purchases (up 7.5%) and two-to-four unit purchases (up 5%).

Looking at different types of fraud, two specifically saw increases. Identify fraud risk increased for the second consecutive year, by 5.5%. Transaction fraud also increased for the second consecutive year, up 4.9% in 2024.

Property fraud risk fell, by 1.8%, income fraud risk fell by 2%, occupancy fraud risk fell by 3.9% and undisclosed real estate debt fraud risk fell by 6%.

The top five riskiest states for fraud were New York (up 4.8%), Florida (up 10.2%), California (up 14.6%), Connecticut (up 10.8%) and New Jersey (up 4.3%).