Following large increases in mortgage fraud risk for much of 2021, CoreLogic has found a year-over-year decrease in fraud risk at the end of the second quarter of 2022.
Per the 2022 Annual Mortgage Fraud Report, mortgage fraud risk is down 7.5 percent year-over-year. Risks of income and property fraud posted the largest year-over-year increases, at 27.3 percent and 22.6 percent, respectively.
CoreLogic estimates that in Q2 2022, 0.76 percent of all mortgage applications contained fraud, or about 1 in 131 applications. The highest risk segment remains two- to four- unit properties, with an estimated 1 in 34 transactions estimated to have indications of fraud.
Investment purchase risk improved in 2022, with a current estimate of 1 in 57. Last year, CoreLogic’s estimate was 1 in 23.