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Interthinx finds mortgage fraud risk ranking in highest since 2004

Jun 08, 2010

Interthinx has released its quarterly Mortgage Fraud Risk Report, covering data collected during the first quarter of 2010. The report includes an analysis of national mortgage fraud risk and indices for the four most common types of mortgage fraud risk. Based on the most current data available, overall fraud risk has increased by four percent from the previous quarter and 11 percent from the same quarter a year ago to 151 (n = 100). This is the first time since 2004 that the index has exceeded 150.   Major findings include the following:   ► Arizona surpassed California as the state with the highest fraud risk, possibly because of a migration from neighboring Nevada similar to that which occurred in 2004 to 2006. Nevada remains in second place with California, Florida, and Michigan rounding out the top five states. ► After a brief dip in the last quarter, property valuation fraud risk resumed the upward trend that began in fourth-quarter 2007, and it remains the primary driver of the index. ► Identity fraud risk and employment/income fraud risk are both up around 10 percent from the last quarter. The rise in employment/income fraud risk strengthens evidence that it is starting an upward trend after a long period of decline. ► Occupancy fraud risk is down by 11 percent, a sharp reversal from last quarter’s rise of 16 percent. Still it is likely that fueled by plentiful inventories and the expected release of “shadow” foreclosure inventory, this index will trend upward in the near future. The full Mortgage Fraud Risk Report report is available by clicking this link. The Mortgage Fraud Risk Report is an Interthinx information product created by an internal team of fraud experts. The report was prepared with input from Constance Wilson, Ann Fulmer, Shane De Zilwa, Ph.D., and the Interthinx analytics team. This is the fourth time the company has released its quarterly report, which is providing deeper insight into current fraud trends through analysis of the extensive pool of data the company amasses from the industry’s use of the Interthinx FraudGUARD loan-level fraud detection tool. “Our lender customers can now benefit from our investment in fraud detection and risk mitigation analytics as we share a more detailed analysis of the data we’ve been collecting,” said Kevin Coop, president of Interthinx. “The data we’ve analyzed in our most recent report will help lenders anticipate and prepare for trends that will impact their risk mitigation strategies. This will contribute to their continued success.” “It behooves all lenders to take a closer look at the first-quarter report and take advantage of the analysis our research team has performed,” added Mike Zwerner, senior vice president for Interthinx. “Our quarterly report is fast becoming the primary source for detailed fraud risk information for the mortgage industry. It provides the only regular report on what is happening in originations today, which allows lenders to take proactive steps to reduce their risk substantially.” For more information, visit
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