MARI report exposes and explores residential mortgage fraudMortgagePress.comMARI, MBA, 10th Periodic Mortgage Fraud Case Report, MARI Fraud Index
The Mortgage Bankers Association recently announced that the
Mortgage Asset Research Institute LLC (MARI), a ChoicePoint
company, has completed its 10th Periodic Mortgage Fraud Case Report
to MBA. The report examines the current state of residential
mortgage fraud and misrepresentation in the U.S., based on
participating subscribers' reports to MARI. The report, which sites
Florida as topping the MARI Fraud Index list for the second
consecutive year and Nevada climbing to the number two ranking, was
released during MBA's annual National Fraud Issues Conference in
Chicago.
"The current market conditions, compounded by mortgage fraud,
are having a detrimental impact on our entire national economy,"
said David G. Kittle, CMB, chairman-elect of the MBA. "The MARI
report provides critical insight for those in the real estate
finance industry to better understand the factors contributing to
these circumstances so that our communities and member companies
are protected."
According to the Mortgage Fraud Case Report, "The conditions in
the mortgage industry for the last half of 2007 made the year one
for the record books." Overall, 2007 marked the lowest volume of
mortgage loan originations since 2002, the highest number of
delinquencies and foreclosures, rapid and near complete shutdown of
the non-conforming secondary market, and hundreds of announced
closures of mortgage originators.
"Because fraud is persistent, it is imperative for the mortgage
industry to collaborate in its efforts to combat mortgage fraud
against lenders," said Merle D. Sharick, vice president of
ChoicePoint and national manager of business development for MARI.
"MARI will continue its efforts to disseminate current data for use
by MBA's members through our annual fraud report."
Highlights in the Mortgage Fraud Case Report include:
In addition to Florida and Nevada, the remainder of this year's
top ten, in order, are Michigan, California, Utah, Georgia,
Virginia, Illinois, New York and Minnesota; ++Colorado showed the
greatest improvement from prior years' rankings, dropping out of
the top 10 for the first time in five years;
The most common types of fraud found in 2007 originations
continue to be in the areas of employment history and claimed
income; and
The continuing unsettled state of the mortgage market as a whole
does not bode well for any improvement in avoiding fraud in the
coming year.
A full copy of the Mortgage Fraud Case Report is available on
both the MBA Web site, www.mortgagebankers.org,
and MARI's Web site, www.mari-inc.com/reports.html.
