CoreLogic names upcoming fraud hot spots
By MortgageDaily.com staff
2/14/2006

Ohio holds most of the top-five markets expected to be fraud hot spots over the next year or so, according to a provider of mortgage risk assessment and fraud prevention solutions.

CoreLogic announced it derived such prediction from its Core Mortgage Risk Monitor, "A predictive map that forecasts the geographic 'fraud hot spot' markets most likely to experience the economic consequences of increased levels of fraudulent activity over the next 12 to 18 months."

Among the largest 100 metropolitan statistical areas, CoreLogic reported that the top-five markets at risk are: Memphis, Tenn.; Youngstown-Warren-Boardman, Ohio-Pa.; and Akron, Dayton and Toledo, Ohio.

Factors behind the development of the predictive map tool include the increased reports of mortgage fraud -- tripling to 21,994 in the last two years, the quadrupled dollar value of such alleged crimes to $1.01 billion, and the risk fraud brings on everyone, from home purchasers and sellers to brokers and lending institutions, of losing substantial amounts of money, according to the announcement.

"Understanding mortgage fraud and knowing which areas are at risk is key to mitigating this trend," according to CoreLogic, which says it is the leading provider of mortgage risk assessment and fraud prevention solutions.

Thus, each quarter, the Sacramento, Calif.-based company will use its proprietary data systems and release an updated Core Mortgage Risk Monitor that provides "a forecast and key trends for localized areas with a high likelihood of negative economic consequences for the community stemming from residential loan performance issues," the announcement said.

Article © MortgageDaily.com All Rights Reserved