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Special Reports
In this section of BrokerUniverse we examine a subject of key importance
for mortgage originators every month, based on special reports that run in our sister publication, Origination News.
Mortgage Fraud
Mortgage Fraud: Looking for Cures
The mortgage industry has always been concerned about fraud, but that concern
is growing into alarm as the number of defaults explodes.
Every month Fannie Mae issues a report about what it sees in its own portfolio
regarding loans it considers to have misrepresentations.
In a recent review of its portfolio for the years 2000 through 2006, the top 10
states where loans with fraud were submitted from during that time frame are: Georgia, Ohio, Indiana, Michigan,
Florida, Texas, Illinois, North Carolina, Pennsylvania and New York. Loans from those states made up two-thirds
of the fraudulent loans, but just less than half of the loans Fannie Mae has acquired during the time frame. This
data appeared in its June 2007 report.
But it is not just during the application process that fraud can occur. A new
effort is being made to stop fraud during the disbursement process.
Stanley M. Street, president of warehouse automation vendor Street Resource Group,
is the founder of The Warehouse Information Network, an effort to share information among warehouse lenders. "Closing
agent fraud is one of the top issues for warehouse lenders because they are wiring millions of dollars to a closing
agent without having a legal relationship with them," he said, calling the agents "the linchpin in most
fraud schemes."
In this Special Report, read about how a trade group of escrow agents put out
consumer information on how to combat fraud. Also hear from wholesalers and industry observers on some of the latest
trends.
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