Purchase Activity Is Up — So Is Mortgage Fraud Risk

As purchase loans dominate the mortgage market in a high-rate environment, fraud risk is climbing. Here's what California homebuyers and investors need to know to stay protected.

With interest rates staying elevated, refinance activity has largely taken a back seat — and purchases are now driving the mortgage market, making up roughly 72% of total loan volume last quarter. That's a significant shift, and it comes with an important warning: where purchase activity rises, mortgage fraud tends to follow.

Fraud in purchase transactions can take many forms — inflated appraisals, misrepresented income, undisclosed liabilities, or even identity theft. In a competitive California market where buyers are under pressure to close deals, these risks become even more pronounced.

As a borrower, here's what you can do to protect yourself:

**Work with licensed, reputable professionals.** Your lender, agent, and escrow team all matter. Vet everyone involved in your transaction.

**Never sign documents you don't understand.** Ask questions. A trustworthy mortgage professional will always take the time to explain.

**Be honest on your application.** Misrepresenting your finances — even at someone else's urging — puts you at serious legal risk.

At our brokerage, we follow strict compliance standards to keep your transaction clean and protected from start to finish. Whether you're buying your first home or adding to your investment portfolio, we're here to guide you safely through the process.

Ready to get started? Contact us today for a free consultation.