Risk of employment or income fraud on mortgages increased 8.8% in the third quarter from the previous quarter and 50% from third quarter 2009, according to research firm Interthinx. Its general Mortgage Fraud Risk Index remained virtually unchanged for the quarter at 143, down 0.1% from a year ago and up 0.9% from the second quarter.
The Stockton, Calif., metropolitan area had the highest risk index at 303, followed by fellow California metros of Modesto (299) and Bakersfield (277). (A score of 100 represents a nominal level of fraud risk.)
By state, Nevada’s score of 255 ranked highest, followed by Arizona at 243 and California at 197.