2022 Report Puts Connecticut in Top 5 For Mortgage Fraud Applications

Fannie Mae defines "Mortgage Fraud" as "a material misstatement, misrepresentation, or omission relied upon to fund or purchase - or not to fund or purchase - a mortgage, including a mortgage associated with a mortgage-backed security financial instrument." To me, that says, "someone lied on their loan application and got away with it", and apparently Connecticut is in the top 5 in the nation at "lying to get a mortgage."

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According to CoreLogic and their Mortgage Fraud Report, New York, our close neighbors are number one on the list of mortgage application fraud risk. The top 5 are Florida, Rhode Island, Nevada, and Connecticut. The kids over in Rhode Island had the biggest increase in mortgage fraud with a 60% increase from 2021 with several factors making that happen including government-backed purchases. The top 5 states that DID see an increase from last year are Rhode Island, South Dakota, Kentucky, New York, and Nebraska. Here is the chart of Fraud Risk Highlights from CoreLogic...

The largest fraud type, according to CoreLogic, is Income fraud risk with a 27.3% increase from 2021 to 2022, property fraud risk is next at 22.6%. Other risks include identity fraud risk, transaction fraud, and occupancy fraud all saw moderate increases from 2021. Undisclosed debt, which is when you do not disclose additional real estate debt or past foreclosures, however, went down 12% from last year.

One of the reasons Connecticut is in the top 5 is because we have three "core-based statistical areas" that are in the top 25 of Mortgage Application Fraud Risk. New Haven-New Milford, Bridgeport-Stamford-Norwalk, and Worcester, MA-CT are all on in the Top 25. Here is a look at the list...

It is something that happens all the time, people lie on their resume`, on credit card applications, on job applications, and on and on. Why not lie on a mortgage application too? Seems easy enough. If you do, good luck to you and let us know how it goes, anonymously of course. Thanks for hanging out with me and remember kids, be truthful on all your applications.