Mortgage Fraud Attacks And Costs Rose During The Pandemic

Mortgage lending is a hot target for fraudsters in the U.S., and the situation has grown worse since the pandemic began, according to a new report from LexisNexis. The LexisNexis True Cost of Fraud Study: Financial Services and Lending examines fraud trends in North American financial services and lending sectors. The 2021 edition is based on responses from August and September 2021. The report revealed that U.S. banks and mortgage lenders saw an increase in fraud costs and attack volumes compared to before the pandemic. Every $1 of fraud loss now costs financial service firms $4, compared to $3.25 in 2019 and $3.64 in 2020. For mortgage lenders, fraud costs $4.40 for every $1, 23.5% higher than before the pandemic…

Mortgage Fraud Rose To Pre-Pandemic Levels In Q2

Mortgage fraud rose 37.2% year-over-year (YOY) through Q2, reaching pre-pandemic levels, according to CoreLogic’s latest Mortgage Fraud Report.  The increases are artificially high given the significant drop in fraud during 2020, which was driven by jumps in traditionally low-risk refinances. The current level mimics mid-2019. “Refinance opportunities that surged lending volumes during the pandemic may be winding down. The outlook is for fewer low-risk refinances compared to purchases and cash-out refinances, which translates to a higher-risk environment for fraud,” said Ann Regan, executive, product management at CoreLogic. According to the Mortgage Bankers Association, increasing interest rates have hampered refinance activity, with applications spiraling to their lowest point since January 2020. Purchase applications have picked up slightly. About 0.83% of all…