RESTON, Va., Aug. 25 /PRNewswire-FirstCall/ -- Reported incidents of
mortgage fraud in the U.S. increased by 42 percent in the first quarter of
2008 from a year ago, according to a new report released today by the
Mortgage Asset Research Institute (MARI(SM)), a ChoicePoint(R) (NYSE: CPS)
company. The report is based on data submitted by MARI subscribers about
loans that were originated in the first quarter of this year and have since
been classified as fraudulent.
Florida continues to lead all states in mortgage fraud, according to
the "MARI Quarterly Fraud Report" on the current state of residential
mortgage fraud and misrepresentation in the United States. In fact, Florida
accounted for 24 percent of all properties with material misrepresentation
submitted by MARI subscribers for loans originated during the first quarter
of 2008.
California is second in the first quarter 2008 mortgage fraud rankings,
followed by a three-way tie for third place among Illinois, Maryland and
Michigan.
For all states, the top fraud incident type was in "General Application
Misrepresentation" followed closely by misrepresentations related to
"Income" and "Employment." In addition, MARI continues to see multiple
fraud types, such as identity theft and identity fraud, in loan
transactions.
MARI provides valuable industry insight derived from its Mortgage
Industry Data Exchange (MIDEX) database, which contains an aggregation of
reported incidents of fraud and verified misrepresentations submitted by
leading mortgage industry participants. MARI analyzes this industry data
and presents reports that depict a national composition of residential
mortgage fraud and misrepresentation to support the industry's effort in
the fight against mortgage fraud.
The new MARI Quarterly Fraud Report is intended to provide more timely
information to help the industry in its efforts to reduce or prevent
mortgage fraud.
"The mortgage industry is currently in a volatile state, as many
constituents try to protect themselves from criminals who continue to use
these turbulent times as an opportunity to commit new fraud and inflict
additional financial damage for our nation's lenders," according to the
MARI Quarterly Fraud Report.
A MARI Loan Fraud Alert Service Pro (LFAS Pro), a new
industry-contributed mortgage loan process management database with
patent-pending technology, enables lenders and investors to identify
potential application risk, patterns of fraud and hidden relationships
among parties involved in mortgage transactions. MIDEX and LFAS Pro are key
components of ChoicePoint's comprehensive Identity Risk Management (IRM)
solutions for the mortgage industry. ChoicePoint's IRM solutions help
mitigate fraud by allowing organizations to better know their customers,
employees and vendors on the front and back ends of the loan process.
The MARI Quarterly Fraud Report is available on MARI's Web site at
http://www.marisolutions.com/resources-news.asp
About Mortgage Asset Research Institute
The Mortgage Asset Research Institute, LLC (MARI) is a premier provider
of mortgage fraud prevention solutions and information services to the
mortgage and financial services industries. MARI's 600+ subscribers
represent the entities involved in over 80% of the wholesale mortgages
originated in the United States. MARI's Mortgage Industry Data Exchange
(MIDEX) service assists lenders in identifying mortgage and real estate
professionals that have been associated with fraudulent activity or serious
misrepresentation. For more information about MARI's services to combat
mortgage fraud, go to http://www.marisolutions.com .
About ChoicePoint
ChoicePoint (NYSE: CPS) provides businesses, government agencies and
non-profit organizations with technology, software, information and
marketing services to help manage economic risks and identify business
opportunities. Consumers have free access to the reports we create at
http://www.ChoiceTrust.com . Learn what we do to protect consumer privacy
by visiting http://www.PrivacyatChoicePoint.com and, for more information
on our company, go to http://www.ChoicePoint.com .
(C) 2008 ChoicePoint Asset Company LLC. All rights reserved. MARI is a
servicemark and ChoicePoint, the ChoicePoint logo and MIDEX are registered
trademarks of ChoicePoint Asset Company.
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