Compliance-Tip-Red-flag-find-fraud
Mortgage Loan Quality

Red Flags on Paystubs and Undisclosed Self-Employment Can Point To Fraud

The presence of one or more red flags is not necessarily indicative of fraudulent intent, but it does point out the need for additional review. Red flags must be documented in the loan file, including red flags identified through various underwriting engines like Fannie Mae (DU), Freddie Mac (LPA).   The following are just some examples of red flags related…

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fraud-purchase-market-mortgage-digital
Mortgage Loan Quality

Fraud Has A Whole New Meaning In Digital Lending

Yesterday, I discussed the impact of today’s “purchase market” on fraud. Today, I want to explore the impact of digital. Because…  It’s a digital world. A few months ago, we learned that one of the nation’s three credit repositories, Equifax, had been hacked. This hack provided the cyber thieves with valuable personal information on about 145 million consumers. The thieves…

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fraud-purchase-market-mortgage
Mortgage Loan Quality

Fraud Has A Whole New Meaning

Fraud has always been a problem for mortgage lenders, but now it’s starting to really get interesting, and expensive. With the home mortgage market turning from refi’s to purchases, rates rising and a housing shortage along comes an increase in loan defects, fraud, and misrepresentations. In the past, instances of fraud mainly centered on the consumer trying to get away…

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Mortgage Industry Trends

Are You Wired For Fraud?

Fraud has always been a problem for mortgage lenders. But, now it’s starting to really get interesting and expensive. In the past, instances of fraud mainly centered around the consumer trying to get away with providing misrepresented information to get approved for their loan. Some instances dealt with unscrupulous parties creating bogus loans based on fictitious information to reap some…

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fraud-ahead-inventory-down
Mortgage Industry Trends

Fraud Risk Rises, Inventory Falls & Lenders Expand Programs

The national mortgage average fraud risk indicator, according to CoreLogic, increased by 3 points in the fourth quarter, going from 135 to 138. The CoreLogic’s mortgage fraud risk index is determined from the total of loan application fraud risk scores during the prior quarter. Scores are calculated for the 100 most populated U.S. Census Bureau Core Based Statistical Areas (CBSAs)…

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