REO fraud is double short sale fraud

[Maryann L.]

"REO transaction volume is more than twice that of short sales with 120,000 REO sales in the second quarter of 2010."
http://www.corelogic.com/About-Us/News/CoreLogic-Releases-Mortgage-Fraud-Trends-Report-Update.aspx

"By November 2010 one in every 24 REO sale transactions, or 4.2% were part of an “egregious resale and therefore deemed risky.†It is way higher than the 1% fraud risk that is considered the acceptable fraud rate."

I find this so interesting. First, how are they defining what gets FLAGGED. Just because there is a quick resale, doesn't necessarily mean it was egregious right?

So, people buy in bulk REO and suddenly there is more fraud. No, there just is MORE REO's and because the number aligns.

Let's keep in mind Corelogic gets their salary from lenders buying their fraud protection program.