The likelihood that fraud or misrepresentation is involved in a mortgage in Georgia is higher than 44 other states. Georgia ranked sixth in the Investigation Mortgage Fraud Index issued by Alpharetta-based LexisNexis Risk Solutions on July 13.
Distressed homeowner fraud is becoming more likely to be the source of the misrepresentation these days, displacing loan originating fraud, according to an FBI report.
The 2011 Investigation MFI dropped to 145 from 185 in 2010, according to the company’s 14th annual Mortgage Fraud report. The report examines the current state of subscriber-verified residential mortgage fraud and misrepresentation in the U.S. committed by industry professionals who subscribe to the LexisNexis Mortgage Industry Data Exchange (MIDEX).
Georgia has been in the top 10 in the Investigation MFI for the past five years, dropping to sixth after being fourth in 2010, fifth in 2009 and 2008, and sixth in