Interthinx 2012 Yearly Report Highlights Geographical Shift in Mortgage Fraud Risk

Author: Interthinx
Dateline: Agoura Hills, California (AGOURA HILLS, Calif.)  | Thu, 25 Apr 2013

freeNewsArticles Story Summary: “Interthinx, a Verisk Analytics, Inc. (NASDAQ:VRSK) subsidiary, and a leading provider of comprehensive risk mitigation solutions for the financial services industry, has released its annual Mortgage Fraud Risk Report, a report covering data and trends based on analysis of loan applications processed in 2012 by the Interthinx FraudGUARD(R) system.”



A R T I C L E:

Interthinx, a Verisk Analytics, Inc. (NASDAQ:VRSK) subsidiary, and a leading provider of comprehensive risk mitigation solutions for the financial services industry, has released its annual Mortgage Fraud Risk Report, a report covering data and trends based on analysis of loan applications processed in 2012 by the Interthinx FraudGUARD(R) system.

"Mortgage fraud risk is persistent and invasive because fraud schemes opportunistically adapt to market shifts," said Jeff Moyer, president of Interthinx. "The Mortgage Fraud Risk Report findings from 2012 remind us it's in our industry's best interests to safeguard the entire residential finance life cycle vigilantly."

According to the yearly report, the 2012 Annual Mortgage Fraud Risk Index is 150, a 3.4 percent increase from 2011's index of 145. This increase reflects the overall rising trend in mortgage fraud risk observed over the past two years and is attributed to market stabilization, tightening housing inventory, and home price increases.

The report also found a marked shift in mortgage fraud risk from west to east, with seven of the top ten states located in the eastern half of the United States. Hit hard by mortgage fraud and foreclosures early in the boom years, many of these states are judicial foreclosure states where real estate sales activity was depressed before the "robo-signing" foreclosure abuse lawsuit was settled. The rise in fraud risk is an indicator that these markets may have hit a true bottom, since rising markets are more attractive to fraudsters seeking profits, and fraud is easier to commit when property values are increasing than when they are decreasing.

More detailed points highlighted by Interthinx analysts include the following:

* Despite the decrease in fraud risk in the western United States, Nevada and Arizona - perennial entrants in the top five - are ranked as the first and third riskiest, respectively. California dropped to sixth place - its first time finishing out of the top five since the inception of the yearly report in 2010 - even though it contains eight of the riskiest Metropolitan Statistical Areas (MSAs) for Employment/Income Fraud Risk, six of the riskiest MSAs overall, and five of the 25 riskiest ZIP codes.

* Employment/Income Fraud Risk is up 7 percent nationally from 2011 and is particularly concentrated in northern California, while Occupancy Fraud Risk declined 11 percent from one year ago, likely reflecting investors' ability to use cash for purchases. Despite the decline in Occupancy Fraud Risk, investor loans remained significantly riskier than owner-occupied and second-home loans.

* Purchase loan applications with loan-to-value ratios (LTVs) of exactly 20 percent are extremely risky with a Mortgage Fraud Risk Index of 637. It is likely that these loans are associated with piggyback type loans where the borrower originates a loan with an LTV of 20 percent for simultaneous use as the down payment for a loan with a second lender for 80 percent of the property value.

The full report is available at http://www.bit.ly/16zgrWu .

For more information about the Interthinx Mortgage Fraud Risk Report, visit http://www.Interthinx.com/ .

About Interthinx:

Interthinx, a Verisk Analytics, Inc. (NASDAQ: VRSK) subsidiary, provides essential solutions to mitigate risk in the mortgage and retail lending marketplace. Interthinx offers capabilities in mortgage fraud and verification, property valuation, compliance, quality control, loss mitigation, retail loan loss forecasting, and capital planning that are used by the nation's top financial institutions.

Interthinx helps its clients minimize risk, increase operational efficiencies, satisfy regulator demands, manage data verification, and remain compliant.

For more information, visit www.interthinx.com or call 1-800-333-4510.

###


Copyright © 2013 by Interthinx and Send2Press® Newswire, a service of Neotrope® - all rights reserved. Information believed accurate but not guaranteed. Sourced on: freeNewsArticles.com.

• Web Image (72dpi): https://www.send2press.com/mediaboom/13-0226-interthinx_72dpi.jpg

• Media Contact Information: https://www.send2press.com/mediadrome/2013-04-0425-001.txt

Story Title: Interthinx 2012 Yearly Report Highlights Geographical Shift in Mortgage Fraud Risk
• REFERENCE KEYWORDS/TERMS: Mortgage Fraud Risk Report, Agoura Hills, California, Verisk Analytics, Banking and Finance, Public Companies, Real Estate, AGOURA HILLS, Calif. , NASDAQ:VRSK.

IMPORTANT NOTICE: some content which is considered "old" or "archival" may reference an event which has already occurred; some content possibly considered "advertorial" may also reference a promotion or time-limited/sensitive offering, and in all of these instances certain material may no longer be valid. For notably stale content, you should directly contact the company/person mentioned in the text (Interthinx); this site cannot assist you with information about products/services mentioned in the news article, nor handle any complaints or other issues related to any person/company mentioned or promoted in the above text. Information believed accurate but not guaranteed as of original date of story [Thu, 25 Apr 2013 06:55:06 GMT].

USE THIS CONTENT FOR FREE: To use this content in your newspaper, broadcast outlet, news portal, blog/ezine or similar, free of cost, CLICK HERE to learn how.