Posted on Wednesday, March 24, 2010
Nationwide, one in every 200 residential loans funded last year, totaling $14 billion, involved fraud, according to First American CoreLogic.
States where the highest number of fraudulent loans were found included California, Florida, Georgia, North Carolina, and South Carolina.
Based on First American’s trend analysis, the highest risk ZIP codes in the United States for fraud are Jamaica, New York; Orlando and Miami, Florida; Atlanta, Georgia; and Detroit, Michigan. These cities have an average fraud rate three to four times the national level.
25 percent of foreclosures show fraud in the initial application, and as much as 70 percent of early payment defaults show indications of fraudulent activity in the application process.