Government-backed purchase share also continued rising, reaching 27% of all purchase transactions due to an increased mix of low-down-payment FHA loans.
“Fraud risk was up slightly quarter-over-quarter, but relatively flat year-over-year. This continues a trend we have witnessed over the past several quarters, despite the high level of purchase loans relative to refinances,” CoreLogic said in the report. “Purchase loans are traditionally higher risk compared to refinances.”
The CoreLogic National Mortgage Application Fraud Risk Index for Q4 2023 was 127, up 2.7% from the previous quarter, and down 1% from the same period in 2022. The minimal change reflects a generally stable risk level.
“Quarter-over-quarter, the same 15 riskiest metros we observed in Q3 are still in our top 15, with minor changes in overall risk noted in each metro,” CoreLogic stated.
The top five highest fraud risk metros include:
