Mortgage fraud has been a serious concern since the housing market’s collapse. However, that issue appears to be waning, which could be a positive trend for consumers and banks.
A recent report from Interthinx shows that the risk of fraud in the mortgage industry has declined sharply.
According to the report, mortgage fraud risk fell 4.3 percent during the first three months of the year. In addition, the risk level also declined 3.1 percent from last year.
This is positive for first-time homebuyers hoping to purchase property. It could improve their approval chances for a home loan, since lenders could loosen lending standards as risks fade.
However, even though the risk of overall mortgage fraud is falling, employment and income frauds are on the rise, the report added. Experts say increases in these areas are a result of borrowers misrepresenting information in order to meet certain debt-to-income ratios with lenders.
Regionally, Nevada was the riskiest state for mortgage fraud during the first quarter. In addition, Arizona and Florida were also near the top of the list. California had been at the top of the list recent years. However, it showed the most improvement. The Golden State dropped to the seventh-riskiest state for mortgage fraud.
By staying up-to-date on a fluctuating housing market, you’ll be able to make informed decisions when it comes to refinancing your home loan or qualifying for a mortgage. Using a home mortgage rate calculator provided by Freedom Mortgage to determine your best course of action could keep some extra cash in your pockets every month.