Cotality reported a slight increase in mortgage application fraud risk in the fourth quarter of 2025, driven largely by higher activity across the investment and multifamily lending spaces.

The company’s National Mortgage Application Fraud Risk Index, released Thursday, rose to a reading of 133 in the fourth quarter, up from the prior quarter and 1.5% higher than a year earlier. The data showed that approximately one in every 118 mortgage applications had indications of potential fraud, compared with one in 131 applications in Q4 2024.

Investment and multifamily loans remained the highest-risk categories, according to the data. An estimated details ⇒

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