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GSE caps on investor loans may add to rising fraud risk: CoreLogic

Apr 21, 2021 - National Mortgage News

The risk of misrepresentation on mortgage applications keeps rising, andnew restrictions at the government-sponsored enterprisesaren't helping, CoreLogic said in a report released Tuesday.

The likelihood of fraud rose nearly 12% on a consecutive-quarter basis and almost 8% year-over-year to an index value of 122 for the first quarter, and the GSEs' restrictions on non-owner-occupied loans mean it's likely even higher now.

The GSEs' new limits increase fraud risk because they put pres...