Mortgage Fraud on the rise


Today mortgage information provider CoreLogic released its “Annual Fraud Report” documenting a rise in consumer mortgage fraud.  The report highlights that recently convicted former Trump campaign manager isn’t the only one who submitted false applications to secure mortgage loans.  As in the case of Manafort, mortgage fraud is a federal offense and the penalties can be stiff, including incarceration.

ALEXANDRIA, VA –  Manafort was charged with financial frauds and is the first defendant in special counsel Robert Mueller’s investigation into Russian interference in the 2016 presidential election to face trial. (Photo by Alex Wong/Getty Images)

Even though the economy has improved, the rise in home prices and corresponding amount of income needed to qualify for a loan has increased.  Although it is a risk management issue the numbers note approximately 1 in 109 applications have some type of fraud.  The report reflects the fraud index has increased for the past seven quarters.

Two fraud issues that are top of mind for risk managers right now are false credit disputes and income misrepresentation.

Video discusses the report shown here

https://players.brightcove.net/75895570001/EJUJuZYOl_default/index.html?videoId=5822617829001

 

 

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