The Prieston Group, who provide fraud insurance and other related services, released a study today analyzing mortgage fraud. Granted this is a press release and does not disclose the number of claims in the study, it does show some interesting results.

They ranked mortgage fraud by type:

Some highlights of study:

  • Appraisal fraud: 9.7% of all claims.
  • Occupancy fraud: was by far the highest type at 52.9% of all claims – “borrowers — or someone acting on behalf of borrowers — misrepresents whether they plan to live at the property.”
  • Mortgage fraud: 48% of all claims in Georgia had some sort of fraud.
  • Average LTV in survey was 81.7%
  • Full doc loans were 55.5%

Remember, these are percentages of claims filed, not total numbers. I suspect the actual transaction numbers with some sort of fraud are much higher.

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One Response to “White Lies: Study Shows Occupancy Fraud in 53% of Claims”

  1. Jack Olson says:

    another reno mortgage fraud story

    http://localism.com/article/11892/Can-Anyone-Help-These-People-In

    when will these fraudsters be run out of business?!