X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

RESTON, Va. – California and Florida no longer have the dubious distinction of being the states with the highest incidence of mortgage fraud. According to a recently released study by the Mortgage Assets Research Institute, Nevada, Georgia, South Carolina, Utah, and Michigan are now in the top ranking spots. The MARI study reported that these five states’ subprime mortgage fraud rates are two to three times the national average. In addition, while Florida and California still have high subprime fraud scores, Florida has dropped to sixth place, and California is in eighth. In the past, the report states, “fraud rates from California and Florida have led the nation by a substantial margin.” MARI’s report is based on information submitted to the association over the past nine years from major mortgage lenders, the secondary market agencies and insurers concerning incidents of alleged mortgage fraud. The information has been collected in MARI’s database called the Mortgage Industry Data Exchange (MIDEX) which tracks the locations of properties backing loans where the reported incidents of fraud occur. MARI opines that early payment defaults – loans that become delinquent more than 90 days in their first year – indicate possible fraud, and it advises subprime lenders operating in the states “would be well-advised to take appropriate actions to address this problem” including underwriting, servicing and borrower education. While early payment defaults do not necessarily involve fraud, MARI says “many such loans contain some form of misrepresentation and should not have been made.” MARI’s MIDEX system doesn’t track identity theft directly, but the association said it recognizes that that type of fraud “is becoming increasingly common and had generated so many problems for consumers and financial institutions that the federal government has been taking a keen interest.” According to a Federal Trade Commission survey in late 2003, more than 27 million consumers reported being victimized by identity theft in the past five years. Even more alarming is the fact that 36% of the cases reported occurred in the past year. -

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2019 ALM Media Properties, LLC. All Rights Reserved.