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Mortgage Fraud Risk Update
Ann Fulmer July 23, 2013
Proven risk intelligence for lenders and investors
© 2013. All Rights Reserved. Interthinx is a registered trademark of Interthinx, Inc.,
Interthinx Top 10 States for Fraud Risk
2003 2004 1-9 / 2005
Arizona Nevada Arizona
Tennessee Maryland Florida
Michigan New Jersey Maryland
New Jersey Florida Michigan
Florida California New York
Ohio Connecticut New Jersey
California New York Ohio
Washington Ohio Connecticut
Maryland Michigan South Carolina
North Carolina Virginia TennesseeNone of the results contained herein reflect either civil or criminal cases of fraud proven in a court of law. The results are comprised from data provided by Interthinx clients, internal and external Interthinx data sources, Interthinx product scoring results, and human decision making logic. The results reflect a significant variance between borrower provided data and the other data sources generally set forth above, and are indicative of a greater potential for misrepresentation. Copyright © 2005 Interthinx All rights reserved.
The Past is Prologue
The Past is Prologue
The Past is Prologue
Hot Spots 2013 Q2Overall Fraud Risk Index by State
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Figure 1: Mortgage Fraud Risk Index by State Q2 2013
Hot Spots 2013 Q2Top 10 for Overall Fraud Risk by MSA
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Figure 2: Distribution of States Appearing on Top 10 MSAs for Overall Fraud Risk Q2 2013
Table 1: Top 10 MSAs for Overall Fraud Risk Q2 2013
Hot Spots 2013 Q2Top 10 for Employment/Income Fraud Risk by MSA
7© 2013. All Rights Reserved. Interthinx is a registered trademark of Interthinx In., Interthinx is a Verisk Analytics company.
Figure 3: Distribution of States Appearing on Top 10 MSAs for Employment/Income Fraud Risk Q2 2013Table 2: Top 10 MSAs for Employment/Income Fraud Risk Q2 2013
Risk Index TrendsOccupancy Fraud Risk is up 15% Year over Year
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Table 5: Top 10 Riskiest MSAs for Occupancy Fraud Risk Q2 2013
Type Specific Fraud Risks
Property Valuation
9©2013. All Rights Reserved. Interthinx is a registered trademark of Interthinx, Inc., Interthinx is a Verisk Analytics company.
Type Specific Fraud Risks
Occupancy
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Type Specific Fraud Risks
Identity
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Type Specific Fraud Risks
Employment/Income
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Closed Loan Property Value Study
Appraised Value vs. Sale Value
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Closed Loan Property Value Study --Refinances
Cash out No cash out Purchase
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REO Schemes and Issues
• Flipping and flopping• Bid rigging• Forged deeds • Reverse, simultaneous and
double escrow closings• Forged payoff letters• Adverse possession and
squatting
Current Fraud Risk and Trends
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$160000 / 5br - 2900ft² - I SALE $250K HOMES @ $0.62 ON THE DOLLAR
** Contractor available for rehab**
ARV $255K!! Your price As-is $160K. Obo.
$25K repairs needed.Condition: TLC
Market Rent. $1635
This is a wholesale "as-is" offer only.Must sell quickly!! Cash Only
See what others are paying around the neighborhood FOR 5 BED 3 BATHS!610 Scotts Way Sold $265,000 on 12/289/25/12 /123224 Ramsgate Rd Sold $243,500 on
Repairs? Renovations?
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Property Value? Pick a Number
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0
50000
100000
150000
200000
250000
300000
350000
2000 2000 2000 2001 2001 2002 2002 2003 2005 2005 2006 2007 2009
Same day flip
Same day flip
Same day flip
Thank You
Ann FulmerVP, Industry Relations
404-626-9916
© 2013. All Rights Reserved. Interthinx is a registered trademark of Interthinx Inc..
The Mortgage Fraud Risk Report is available at www.Interthinx.com
