The Miami, Fort Lauderdale and West Palm Beach metro area has seen a decline in mortgage fraud according to recent CoreLogic report which showed a 22% drop in mortgage fraud for these areas.
"Mortgage fraud can take two forms: when buyers lie about their income on a loan application, or when sellers inflate the value of their property," according to the Miami Herald.
"Capital Partners Mortgage President Craig A. Garcia attributes the drop to federal interest rates. The decline in mortgage interest rates between April and September has led to fewer buyers and sellers committing mortgage fraud, said Garcia. 'There are a whole amount of applicants refinancing and less are committing fraud.'"
Unfortunately Miami is still leading the U.S. when it comes to mortgage fraud risk with the NY, Newark and Jersey City metro area coming in at second place.
"Some attribute South Florida’s drop in fraud risk to stricter regulation from lenders, who are using more tools to mitigate against fraud, such as reviewing appraisals more closely to assess home values and ensure the asking price is not inflated," according to to the report.
To learn more about mortgage fraud risk in South Florida, click on the image above.