Mortgage Application Fraud Increases in First Quarter of 2019 as Fraudsters Become More Sophisticated in How They Fudge Their Income

The National Mortgage Application Fraud Risk Index maintained by CoreLogic found a six percent increase in mortgage fraud risk in the first three months of 2019 relative to the first quarter of 2018. Applicants lying about their income have been increasingly more difficult to detect in recent years, employing tactics such as lying about employment and promotions while providing false documentation to corroborate employment claims, as well as counterfeit college transcripts and divorce decrees.

Fraudulent applicants are taking advantage of the time it takes for new employment records and information to reach traditional credit and employment data vendors. Since 2016, CoreLogic has seen consistent increases in the number of applicants or borrowers claiming a new job or promotion that occurred within the past year.

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