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Refi Recession Drives Up Mortgage Fraud Risk

The quarterly level of fraud risk on residential loan applications has grown over the past year thanks to a decline in refinances and an increase in wholesale lending share.

For the second quarter, the Mortgage Application Fraud Risk Index was 149. The index is a representation of the collective level of fraud risk the mortgage industry is experiencing.

In the preceding three-month period, the index was roughly just over 140. During the same three months last year, the fraud index approximately came in at 133.

Source: Mortgage Daily