MReport July 2018

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TH E M R EP O RT | 43 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST Wichita has the Highest Mortgage Fraud Risk A CORELOGIC REPORT EXAMINES MORTGAGE FRAUD IN THE 100 LARGEST CBSAS. KANSAS // Mortgage application fraud appears to be on the rise, with six consecutive increases in the CoreLogic National Mortgage Application Fraud Risk Index. The latest fraud index was up 10 percent from a year ago and posted a 4 percent increase from Q 4 of 2017 to Q1 of 2018. CoreLogic noted that the rise in the index could be at least partly attributed to the increas - ing share of purchase applications as refinance volumes decrease. Generally, purchase applications carry greater fraud risk than refinance applications, according to CoreLogic. The types of fraud CoreLogic described as most prevalent were "more frequent inflated income characteristics" and "multiple indicators of increased risk of occupancy misrepresentation." Concerning occupancy misrep - resentation, CoreLogic noted the trend was the "type where loan applicants seek to build rental portfolios under the more favorable lending terms offered to owner-occupants." The share of purchase applica - tions rose from 58 percent in Q 4 of 2017 to 62 percent in Q1 of this year. Among the 100 largest core- based statistical areas, Wichita, Kansas, ranked highest for mortgage application fraud risk, jumping to the No. 1 spot with a 46 percent quarter-over-quarter rise in fraud risk. CoreLogic's index scores are grounded on a standard score of 100 based on the national share of loans with high fraud risk in Q 3 of 2010. Each 1 point vari - ance from 100 signifies a 1 percent increase or decrease in the share of loans with high fraud risk, ac- cording to CoreLogic. Leading the nation in fraud risk, Wichita's index rating in Q1 was 330, which was 50 points higher than its successor, Miami- Fort Lauderdale-West Palm Beach, Florida, with a score of 280. These two metros were fol - lowed by New York-Newark-Jersey City, New York-New Jersey- Pennsylvania (261); Springfield, Massachusetts (258); and Oklahoma City, Oklahoma (254). These compare to a national index score of 144. Fourteen of the 15 riskiest metros experienced rising risk index levels in Q1 of the year. Leading Mortgage Diversity Efforts NEW ADVISORY COUNCIL ELECTED FOR MORTGAGE DIVERSITY GROUP, AMERICAN MORTGAGE DIVERSITY COUNCIL. TEXAS // The American Mortgage Diversity Council (AMDC) announced results of its first advisory council election dur - ing the AMDC Member Meeting on May 2, 2018. The elections were held six weeks before the meeting with eight candidates running for seven elected positions to the council. The group fosters discussion and promotes action through ac - tive participation with mortgage lenders, servicers, and related ser- vice providers. The group regularly engages with various federal agen- cies on policies and procedures impacting diversity and inclusion across the mortgage industry. The AMDC advisory coun - cil consists of some of the top names in the industry who guide members of the organization to focus on the group's core mission of creating a diverse and inclusive mortgage industry for all. "The AMDC exists to facilitate action that promotes positive change on diversity and inclusion within the residential mortgage industry," Ed Delgado, President and CEO of the Five Star Institute, said. "These elected lead - ers are emblematic of the passion and energy for the adoption of in- clusive practices, that is embodied throughout the membership. I look forward to serving alongside this distinguished group." Members of the advisory council are: • Ray Barbone, EVP, Bank Operations, BankUnited • Tamara Haskins, FVP, Diversity & Inclusion, PennyMac • Lola Oyewola, Director, Human Resources, Ocwen Financial Corporation • Doris Raimundi, SVP, Mortgage Servicing, Head of Quality Control, U.S. Bank • Stephanie Roemer, Director, Office of Diversity & Inclusion, Freddie Mac • Michael Ruiz, Director of Supplier Diversity, Fannie Mae • Steve Thomas, Senior Managing Director, Mortgage Capital Markets, Federal Home Loan Bank of Chicago "I am delighted to be a part of the AMDC advisory council and look forward to continuing to support and advance the mission of the AMDC," Haskins said of her appointment. Under the direction of AMDC Chair Kathy Cummings, SVP, Homeownership Solutions and Affordable Housing Programs, Bank of America, and Vice Chair Charmaine Brown, Director, Engagement and Outreach at the Office of Minorities, Women and Inclusion at Fannie Mae, the new - ly elected advisory council will continue AMDC's work of shap- ing the diversity agenda. AMDC also works to advancing solutions that support a broad range of member initiatives that include supply-chain diversity, challenges faced by minorities, LGBT, and women-owned businesses. Editor's note: The Five Star Institute is the parent company of both the American Mortgage Diversity Council and MReport. LOCAL EDITION ORIGINATION "I am delighted to be a part of the AMDC advisory council and look forward to continuing to support and advance the mission of the AMDC." —Tamara Haskins, FVP, Diversity & Inclusion, PennyMac

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