Big Fraud

Texas ranks worst in mortgage fraud index
By MortgageDaily.com staff
9/18/2002

Everything is bigger in Texas. Including mortgage fraud. The Lone Star State ranked highest in a recent gauge of fraud activity.

According to the Suspected Fraud Activity Index for August of this year, the state showing the most deterioration in the Fraud Index combined with the higher activity levels is Texas. Last year, Maryland was the state with the most instances of possible fraud.

The index was created by Affinity Corporation, a California company that provides fraud prevention services to the mortgage industry. Affinity used data gathered from its automated electronic loan review system during June through August of this year for the current index.

Other states that ranked near Texas were Alaska, California, Delaware, Maryland, Nevada, New Jersey, Oklahoma, Oregon, South Dakota and West Virginia.

The state that showed the most improvement in the Index was Alabama.

The national Index, which stood at 555 for August, improved from 538 in July. The index can range from a low of 400 -- indicating the highest level of fraud activity -- to a high of 950, according to a company spokesman.

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