Decline in Possible Application Fraud No Reason Not to Remain Vigilant


Kroll Factual Data said it saw a 1.6% average decrease nationwide regarding possible fraud in applications it processed in 4Q12 when compared with 3Q12. On a year-over-year basis, the decline was 3.4%.

But there were 10 metropolitan areas where the quarter-to-quarter increase for potential fraud in applications was up 15% or greater, with five cities at or over 25%.

“Any decrease in potential fraud is good news for lenders,” said Rod Bazzani, president of Kroll Factual Data, “but when one out of four applications in various locations around the U.S. can trigger fraud alerts, lenders are well advised to continue updating, strengthening and integrating their verification and quality control methodologies throughout the entire lending cycle.”

The areas with the biggest increases in potential fraudulent applications are San Francisco-Oakland, up 32%; Champaign-Urbana, Ill., 31%; Trenton, N.J., 27%; Cedar Rapids, Iowa, 25%; and Boise, Idaho, 25%.

On the other hand, markets which saw the largest improvement regarding submitted loan applications which might be potential fraudulent are Barnstable-Yarmouth, Mass., down 22%; Santa Fe, N.M., 20%; Sacramento, Calif., 17%; Ann Arbor, Mich., 17%; and Oklahoma City, 15%.

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