Housing fraud is on the rise amid tight market conditions, experts say

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As the housing market remains tight, experts say real estate fraud has spiked in the US

have all cratered, leading some experts over the last year to warn of a housing market crash that could bring on a steep correction in home prices.

According to CoreLogic's principal of industry solutions, Bridget Berg, it's becoming harder for people to sell homes as the cost of borrowing stays near a record high. That's helped drive higher instances of property fraud. "Chaos creates a perfect time for cyber criminals to take advantage of these, especially in the housing industry," he said, adding that each transaction between parties is an opportunity for a fraudster to strike.Berg told Insider that she expected to see an uptick in mortgage fraud in coming years, with CoreLogic's National Mortgage Application Fraud Index having increased 30% from its low during the pandemic.

He speculates that fraud could increase as much as 20%-25% over the next few years if the market remains tight.

 

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