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.