Mortgage Fraud Index Falls to 11-Quarter Low

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    Mortgage Fraud Index Falls to 11-Quarter Low

    PR Newswire

    DALLASApril 18, 2011 /PRNewswire/ — The Mortgage Fraud Index from MortgageDaily.com has fallen 69 percent over the past year to the lowest level since early 2008, while the dollar volume of associated loans was off by more than half. But the lull might only be temporary.

    The Mortgage Fraud Index was 814 in the fourth-quarter, falling from 2634 a year earlier. The index — which reflects both the number and dollar volume of cases tracked by the mortgage fraud blog FraudBlogger.com — reached its lowest point since the first-quarter 2008's 713.

    The dollar volume of mortgages tied to the criminal and civil cases dropped to a three-year low of $0.9 billion.

    The drop reflected a 36 percent annual contraction in the number of cases that saw activity during the period.

    Index by Quarter

    Period

    Index

    Amount

    #?Cases

    Q4 2010

    814

    $867,318,214

    126

    Q3 2010

    1007

    $1,850,531,120

    151

    Q4 2009

    2634

    $1,922,002,499

    197

    "The decline in the Mortgage Fraud Index itself, as well as a drop in the number of cases and lower dollar volume, followed the Department of Justice's launch of Operation Broken Trust," Mortgage Daily Founder and Publisher Sam Garcia said. "The activity suggests that some resources might have been diverted from prosecution of real estate crimes."

    California moved from No. 2 in the previous report to No. 1 — trading positions with Florida. New York maintained its top-three standing.

    Top States by Index

    State

    Index

    California

    93

    Florida

    73

    New York

    73

    Pennsylvania

    60

    Virginia

    60

    Virginia, which did not rank in the top five during the third-quarter, ranked at least fifth in both categories this time around. The state's dollar volume more than tripled from the prior quarter.

    Top States by Amount

    State

    Amount

    California

    $205,366,515

    New York

    $122,249,646

    Pennsylvania

    $105,144,929

    Virginia

    $69,675,970

    Florida

    $59,896,409

    The volume of case activity has recently risen based on recent FraudBlogger.com entries — suggesting the upcoming first-quarter 2011 index could increase.

    Full Mortgage Fraud Index report:
    http://www.mortgagedaily.com/FraudIndex.asp

    Mortgage Fraud News:
    http://www.mortgagedaily.com/MortgageFraud.asp?spcode=pr

    Mortgage fraud Blog:
    http://www.FraudBlogger.com

    About MortgageDaily.com

    Founded in 1998, http://www.MortgageDaily.com provides online mortgage news and analysis for the mortgage industry. More than 30,000 people visit MortgageDaily.com each month.

    CONTACT:
    Holly Himelright
    NewsAlert@MortgageDaily.com
    3811-700 Turtle Creek Blvd.
    Dallas, TX 75219

    SOURCE MortgageDaily.com