Real Estate Fraudsters Migrate to FHA and REO Sales

November 18, 2010: CoreLogic, a leading provider of consumer, financial and property information and business services, today released an update to its 2010 Mortgage Fraud Trends Report which states that mortgage fraud increased by more than 20 percent since the fraud rates reached their lowest point in early 2009.

Additional Report Highlights
•Increased lending through FHA and HARP loan programs accounted for most of the increased risk in 2009 and 2010.
•Second quarter of 2010 had the highest volume of single family resident short sales with nearly 60,000 short-sale transactions.
•REO transaction volume is more than twice that of short sales with 120,000 REO sales in the second quarter of 2010.
•Investment companies are involved in a disproportionately higher percentage of suspicious resales. Figure 8 in the report provides more detail.
•Flipping and flopping hot spots in the US are Southern California, Phoenix, Detroit and Atlanta.
•Lenders have reported that occupancy fraud, employment fraud and undisclosed debt are on the rise. Figure 10 in the report provides more detail.

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