Five most dangerous cities to have a mortgage

Published: Thursday, Jan. 31 2013 12:20 p.m. MST

In this August photo, a home with a room for rent is seen in Palo Alto, Calif. While the housing market is improving, instances of potential mortgage fraud have also increased nationwide, led by huge leaps in five cities.

Paul Sakuma, Associated Press

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Summary

Potential mortgage fraud nationwide rose in the third quarter of last year due to significant increases in five metropolitan areas, according to Business Insider.

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Potential mortgage fraud nationwide rose in the third quarter of last year due to significant increases in five metropolitan areas, according to Business Insider.

“This spike in potential fraud is troubling, coming at the same time the mortgage industry is beginning to turn the corner,” said Rob Bazzani, president of Kroll Factual Data, to Business Insider.

Flint, Mich., had a potential mortgage fraud increase of 50.32 percent on a quarterly basis. This was the largest of any metro area by far, in areas where 1,000 or more applications were processed.

Columbia, Mo., was the next closest increase at 29.77 percent. Close behind was Lancaster, Pa., with a jump of 28.83 percent. The other major increases include Tacoma, Wash., at 25.68 percent and Santa Fe, N.M., with 24.24 percent.

EMAIL: alovell@deseretnews.com

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