Real Estate News | Real Estate Investing | Stock Market Investing | Passive Income | Flipping | 1031 Exchange | Private Lendi

Fraudulent applications for the government’s Covid-era Paycheck Protection Program helped push home prices higher in some markets. That’s the conclusion of new research from the University of Texas at Austin. It says that fraudulent PPP loan recipients increased their home purchase rate more than non-fraudulent loan recipients, and that that corresponded to higher home prices. (1)    Hi, I'm Kathy Fettke and this is Real Estate News for Investors. Please remember to subscribe to this podcast and leave us a review.   The research paper shows that home price growth was much faster in areas with a high amount of “suspicious lending per capita.” In other words, areas with higher rates of loan fraud correlated with fraud recipients who also bought property. That may have increased prices due to competition among well-funded buyers, or maybe because it was easy to spend a little more on a home with easy money.   Loan Fraud Impact on Home Prices   So what was the estimated size of this impact? The report says: “at t