South Florida – specifically Miami-Dade-Fort Lauderdale-West Palm Beach counties – has earned the dubious honor of being the leader in mortgage fraud in America, according to a report from CoreLogic.
This despite risk in that area dropping 9.1% year-over-year in Q2 of this year.
The area has seen its fair share of mortgage fraud cases.
Former North Miami Mayor Lucie Tondreau was sentenced to 65 months in prison for her role in an $11 million scam.
And fraud isn’t the only worry for the area.
“Although overall fraud trends are stable to decreasing for most of the country, some geographies warrant scrutiny. One such area is Miami CBSA, which ranks atop the CoreLogic fraud lift of metropolitan areas,” Susan Allen, senior vice president of mortgage analytics at CoreLogic, said in the report. “Of particular concern is that house prices in Miami appear to be overheated ... Moreover, house prices in the Miami CBSA have been accelerating at a far greater pace than have rents for single family homes, suggesting that prices may not be a good indicator of sustainable value.
“This combination of risk factors makes areas like Miami worth paying attention to."
And it isn’t just South Florida that is at high risk of mortgage fraud. Three other Florida areas rounded out the top-4.
Tampa-St. Petersburg-Clearwater, Florida poses the second highest risk; followed by Orlando-Kissimmee-Sanford, Florida.
The fourth highest area at risk of mortgage fraud is North Port-Sarasota-Bradenton, Florida.
The #1 county for mortgage fraud in the country may not be all that surprising – especially considering its own mayor was sentenced for mortgage fraud.