Minnesota: Another Dubious Set of Top Ten Rankings

by Alex Stenback on May 18, 2007

Though Kiplingers magazine recently named the Twin Cities one of the top five places to be married with children, a report released today to the Mortgage Bankers Association confers another set of rankings on Minnesota that aren’t so great.

Turns out, Minnesota ranks 8th nationally for reported mortgage fraud for all loans, and 4th nationally for mortgage fraud in Sub-Prime mortgages:

All_fraud_mortgage

Subprime_fraud_mortgage

As we have reported, Minnesota is a high FICO score state, which makes the volume of Sub-Prime fraud more than a little disturbing.

Other notable data points from the report:

  • Reported mortgage fraud increased 126% in Minnesota from 2005 to 2006.
  • As recently as 2003 Minnesota had such a low incidence of mortgage fraud that we were not even included in national statistics.  Exploding problem, anyone?
  • "Fraudsters are also taking advantage of technology. A large number of Web sites have popped up on the Internet that enable unscrupulous individuals to create false names, boost credit scores, rent assets and create false documentation. Mortgage fraud perpetrators often have technology as good as, or better than, lenders. They also have virtually unlimited creativity."

PDF: MARI Report to the MBA [mari-inc.com]
ChoicePoint Press Release on the Report [choicepoint.com]
Thanks to our west-coast friends over at Socketsite for pointing out the study.

{ 3 comments… read them below or add one }

Henry May 18, 2007 at 11:48 am

We’re seeing a similar effect of mortgage fraud increases with high FICO scores in the Phoenix area. It is indeed a disturbing trend.

Chuck May 22, 2007 at 7:43 am

The conclusion is startling, and unpleasantly obvious, if considered in the context of your May 01, 2007 post “Minnesota Ranks Top Three in Transactions, Number of Agents, Sales Volume”.

Nbkvqfz June 1, 2007 at 10:56 am

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