Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Mortgage fraud on the rise — report

Notify me of new replies via email
Mortgage Professional America | 23 Sep 2016, 08:15 AM Agree 0
Mortgage fraud was up year over year in the second quarter, and fraud risk jumped even higher
  • Anonymous | | 23 Sep 2016, 11:42 AM Agree 0
    I cry foul. There is no possible way that fraud is occuring in greater numbers now, post-meltdown. Our files are all so heavily scrutinized now that there is no possible way that someone could even think they could get away with fraud today. I firmly believe this is a ploy being used by 3rd party compliance providers to somehow show their value in a market that should be showing declining demand. "Look at this special report. See? Fraud is rising so you better sign up with us. Only we can protect you..." BS, BS, BS...
  • | | 23 Sep 2016, 11:52 AM Agree 0
    I agree. Virtually every mortgage provided under current rules and regulations are the highest quality mortgages in the history of lending. I call BS as well.
  • | | 23 Sep 2016, 12:08 PM Agree 0
    I agree credit has not loosened at alll and programs are limited.
  • | | 23 Sep 2016, 12:39 PM Agree 0
    We need to call back Barney Frank and ask him for some reform please.
  • J. Scott | | 23 Sep 2016, 12:51 PM Agree 0
    I wonder if all the new compliance regulations and fears of CFPB enforcement has resulted in a higher fraud REPORTING rate than in previous years...
  • G. Atwood | | 23 Sep 2016, 01:08 PM Agree 0
    Question: What size companies are they referring to? I am a part owner in a mid-size Mortgage Banking company. We have 25 LOs. We have been audited 4 times over the last 4 years; by AZDFI (Arizona Dept. of Financial Institutions), by HUD, and the VA. Additionally, we provide QC files to mortgage insurance companies, Credit companies (Equifax) etc. TRID has caused us to hire 3 additional staff which is a lot for a company our size. We are incredibly strict with our advertising, Anti-Money Laundering, disclosures, and other factors impacted by new compliance laws. We now require quarterly education classes in addition to our required renewal classes. The mortgage officers know that the offenses are no longer just the responsibility of the company. Their names go on the Note. We are proud of our transition to the new compliance regulations and take it very seriously. I am not so sure about the big banks or even the larger mortgage companies, but I agree with the previous comments that I disagree that there is more fraud in today's environment.
  • anonymous | | 23 Sep 2016, 01:23 PM Agree 0
    I ii
  • | | 23 Sep 2016, 03:06 PM Agree 0
    WOW Can't believe it! I feel like I am gathering all but their first born to even get it to the closing table.
  • Doubtful | | 23 Sep 2016, 04:23 PM Agree 0
    The House of Representatives is debating abolishing the CFPB (an action of which I heartily approve!). This could be a red herring thrown at us by certain people with an interest (honorable or dishonorable) in keeping the boot of Dodd/Frank and the CFPB on the neck of mortgage lenders and mortgage customers. I can't believe it is actually the truth.
  • Jim | | 23 Sep 2016, 08:20 PM Agree 0
    What kind of fraud? Not in residential. I agree BS
  • Dick | | 26 Sep 2016, 01:01 PM Agree 0
    The key to this article is "More than 12,000 mortgage applications were estimated to have indications of fraud" Operative statement is INDICATIONS of FRAUD. The questions is, has the criteria for generating the indications changed based upon the more stringent screening of mortgage applications? Hypothesis is flawed!

  • Mortgage guy | | 27 Sep 2016, 12:38 PM Agree 0
    Nonsense more fraud.
  • Hunter McGaven | | 28 Sep 2016, 03:01 PM Agree 0
    Lets put this into perspective. I am sure all of the posters on this post looked at every single mortgage that comes through the state of FL. I mean all of them right? It is without doubt that credit is tighter along with regulations; this does not mean fraud just stops because of regulations. Lastly, there is always someone that really believes they can beat the system.

    Yours truly,

    The Man
  • Anon | | 04 Oct 2016, 02:40 PM Agree 0
    SAME as above
  • | | 09 Nov 2016, 02:49 PM Agree 0
    I fully agree that mortgage fraud is still on the rise with nasty lenders like Bank of America, Seterus (not really a lender but a debt collector for FNMA), Urban Settlement Services and many other co-conspirators are still stealing property form people using forged, fabricated, and phony documents. I know first hand because I had supposedly and allegedly five (5) mortgages that were allegedly originated and funded by Countrywide Home Loans.

    Thank goodness for the latest 10th Circuit Court Ruling in Colorado on RACKETEERING CHARGES on behalf of Urban Settlement Services and Bank of America. I even have undisputed proof of all this fraudulent behavior, but there are crooked congress people who are part of our government which took over Fannie and Freddie back in 2008 under a Government Services Enterprise (GSE) that is now allegedly making all kinds of money and screwing all us property owners at the same time!! How is that for the government running things like this, the post office, and many other failures. I agree with the majority now that is is time to drain the swamp, if only that will happen!??

    This whole mortgage scandal has gone on for years now, and I believe ALL of us property owners where are the true victims here. It sure is sad to see one's own government taking advantage of property owners and everyone for that matter. The sooner they can hopefully "drain the huge swamp" the better off America should be. Wells Fargo is only the tip of the ice berg in my opinion. Bank of America should be next now based upon the hundreds of thousands of complaints to everyone including the CFPB (they are useless) and many others.

    Little wonder that one can not get help from Fannie Mae who is actually breaking the laws and not following the CFPB and helping people recover from phony "in-house" modifications by many lenders using people like Urban and many others. Semper Fi people. We need to put a lot of these "so-called crooked leaders" behind bars where they belong. Yes, I am bitter but I am a serious victim and a 72 year old Vietnam Veteran who could sure use some help:)
Post a reply