A trend of regional dispersion of risk has occurred over the last four quarters as noted in previous editions of the quarterly Interthinx Mortgage Fraud Risk Report. Figure 3 shows the concentration of fraud risk across MSAs. Once again, California shows a high density of high risk metropolitan areas, contributing 11 of the 25 riskiest MSAs. Florida is home to four of the riskiest 25 MSAs, and New Jersey contains two.
Figure 3: Mortgage Fraud Risk 2014 by MSA
Figure 4 lists the top five MSAs with the highest overall Mortgage Fraud Risk Indices, with risk decreasing from left to right. Moving from number two last year, Fayetteville-Springdale-Rogers, Arkansas-Missouri, is the riskiest MSA in 2014 with an index of 159. Property valuation fraud risk and identity theft fraud risk are both primary drivers for the overall Mortgage Fraud Risk Index in this MSA.
Figure 4: Top Five Mortgage Fraud Risk 2014 by MSA
Table 1 lists mortgage fraud risk for the 25 MSAs with the highest estimated originations, ranked by origination in descending order.
Table 1: Mortgage Fraud Risk for MSAs with Highest Estimated Originations in 2014
Table 2 lists the 10 ZIP codes with the highest mortgage fraud risk for 2014. ZIP code 85355 in Waddell, Arizona is the riskiest ZIP code with an index of 375. High property valuation fraud risk plays the most important role in all top 10 riskiest ZIP codes, except for ZIP code 35243 in Birmingham, Alabama, which has high risk in both identity and occupancy types.
Table 2: ZIPs with the Highest Mortgage Fraud Risk 2014
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