Georgia's mortgage-fraud ranking stays at No. 8

Georgia ranked No. 8 in the country for the level of mortgage fraud in the state, according to a report released Monday.

That’s the same ranking as a year ago, but it’s markedly better than 2005, when Georgia held the dubious distinction of being the nation’s mortgage fraud capital.

The report, from the LexisNexis Mortgage Asset Research Institute, found that Florida had the highest “mortgage fraud index” at 292, meaning that it had almost three times the level of mortgage fraud as would be expected based on the number of mortgages generated in 2009.

Georgia had a fraud index of 124, down from 156 in 2008. In 2005, Georgia led the nation with an index of 297.

It’s not clear why Georgia’s numbers have improved. The authors of the report speculated that consumer awareness campaigns in the state may have worked to put borrowers on higher alert for potential scams.

There has been “considerable improvement over the last few years,” said Denise James, a co-author. “It’s very notable.”

The study measured “verified cases" of significant misrepresentation and fraud, as reported by mortgage industry professionals. Top problem areas included suspect applications, fraudulent income and employment verification and suspect or fabricated appraisals.

State mortgage fraud index

1. Florida 292

2. New York 217

3. California 159

4. Arizona 158

5. Michigan 136

6. Maryland 136

7. New Jersey 135

8. Georgia 124

9. Illinois 107