Mortgage Fraud Risk Rose 9.1% in Q2, Cotality Says

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The reported increase is a reminder for mortgage teams to tighten application review as purchase loans make up more of the active pipeline.

Mortgage fraud risk increased 9.1% in Q2 2026, according to an Aug. 6 HousingWire report citing Cotality. The reported rise came as purchase lending regained momentum and higher mortgage rates kept refinance activity subdued.

For loan officers, the story is less about panic and more about process. A purchase-driven pipeline can bring more contract deadlines, more third-party inputs, and more pressure to move quickly, which makes clean documentation and early red-flag review even more important.

Key takeaways

• Cotality said mortgage fraud risk increased 9.1% in Q2 2026, according to HousingWire.
• HousingWire connected the increase to stronger purchase lending and muted refinance activity caused by higher mortgage rates.
• Specific fraud categories, geographic hotspots, and methodology were not confirmed in the supplied material.
• Loan officers should focus on cleaner intake, earlier document review, and better documentation of inconsistencies.

Sources

• HousingWire — Cotality says mortgage fraud risk rose 9.1% in Q2

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