According to a release, in the first quarter of 2014, the national Mortgage Fraud Risk Index value is 100, the same value as it was a year ago and down 1 percent from Q4 2013. The national Property Valuation Fraud Risk Index is 128, up 27 percent from last quarter and 17 percent from a year ago. Indicators suggest this increase is driven by persons in certain areas purchasing and listing multiple properties in the same neighborhood. By controlling those markets, these persons have the ability to artificially control the price of a property to their advantage. Another contributing factor observed is the rise of properties being appraised well above traditional valuation thresholds.
Other notable findings in the report include the following:
-The top 10 riskiest states for Q1 2014 are
-After largely disappearing from the riskiest MSAs, Miami-Ft. Lauderdale-
"This quarter's report is a reminder that lenders need to be aware of emerging fraud risks. The rise in property valuation risk is troublesome because collateral values are a critical element in making sound lending decisions," said
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