Despite recent improvements in the mortgage industry, incidents of mortgage-related fraud continue to plague the housing market's recovery.
According to mortgage records cited in a recent Interthinx Mortgage Fraud Risk report, there are six key states where fraudulent activity continues to run rampant. These states, in the order of the highest mortgage fraud risk, are Nevada, Arizona, Florida, California, Colorado and Michigan. In addition, Vermont and Connecticut were recognized for having the largest increase in their rates of fraud.
"Keeping our guard up as risk profiles shift requires our industry to think as creatively as the criminals," said Interthinx president Kevin Coop. "That's only possible when lenders have access to the best data and analytics available."
The report noted that the most common fraud committed on mortgage documents pertain to the employment and income data of borrowers. This composite of the Index rose 14 percent during the course of 2011.
However, the report wasn't all negative. It was found that Rhode Island, Massachusetts and New Hampshire all experienced significant drops in their incidents of mortgage fraud.