In Q2 2024, one in 123 mortgage applications (0.81%) contained fraud, with purchase loans exhibiting higher risk (0.9%) compared to refinances (0.58%). CoreLogic noted this increase despite a generally quiet borrower demand, indicating a concern regarding mortgage application security.
CoreLogic highlighted that the risk factors for identity fraud have surged for two straight years, reflecting a 5.5% jump in 2024 and a 12% rise in 2023. This increasing trend is closely linked to the rise in loan programs for foreign nationals using ITINs instead of SSNs, which complicates risk assessments.
The analysis firm pointed out that multiunit dwellings present a higher risk of fraud, with one in 27 applications (3.5%) containing fraud instances. The risk associated with purchase transactions for multiunit dwellings has also increased by 5% compared to the second quarter of 2023.
CoreLogic's Mortgage Application Fraud Risk Index has seen a steady increase, reporting an 8.3% year-over-year rise in Q2 2024, with a 1.1% increase from the previous quarter. This trend aligns with the minimal changes in the factors influencing mortgage market risks.
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