Mortgage fraud risk surges from a year ago

The potential for mortgage lending fraud accelerated over the past year, with risk related to undisclosed transaction details driving much of the surge, according to Cotality.

In its latest report, the real estate data platform found fraud risk was up 7.3% year over year in the first quarter. Risk lessened over time, though, coming in mostly flat from the previous three-month period, with an 0.3% drop. 

Cotality’s mortgage application fraud risk index score finished at 133 at the end of March, according to its quarterly published data. The reading surged from 124 a year earlier.  

“While mortgage delinquencies are currently low across the U.S., the market is ripe for an increase in fraud because of the continuing high interest rates, slow housing market and other increasing costs of…