Risk of Mortgage Fraud Declines
Lenders faced less risk of mortgage fraud during the final three months of 2013. But on multi-unit properties, borrowers were over three times more likely to lie about occupancy than on single-unit transactions.
GSEs Required to File SARs
A new requirement that Fannie Mae and Freddie Mac file suspicious activity reports is expected to help fend off mortgage fraud.
Mortgage Fraud Prevention Firm to be Acquired
A mortgage industry service provider that helps lenders identify mortgage fraud risk and prevent fraud on home loans is being acquired.
Potential Mortgage Fraud Increases Again
The likelihood of mortgage fraud on new residential loan applications during the latest quarterly period moved higher again.
Ringleader of Nigerian HELOC Scam Sentenced
Mortgage Firms Stop Lending as Bank Failures Plummet
In a criminal case that could be right out of a fiction novel, the ringleader of a Nigerian group that stole from U.S. home-equity lines of credit who went on the lam has finally been sentenced to prison.
Some mortgage lenders continue to abandon origination channels. Bank failures, however, have slowed to a trickle and are on track to come in lower than during any year since the financial crisis hit.
Mortgage Fraud Risk Rises, Jumbo Riskier
The risk of mortgage fraud increased during the latest three-month period -- with identity and occupancy fraud risk seeing the most deterioration. New data suggests that jumbo mortgages present more risk than non-jumbo loans. A community that borders Arkansas and Missouri is one of the nation's worst hot spots.
Freddie Updates Underwriting Requirements
Among several guideline updates announced by Freddie Mac are enhanced quality control tracking, fraud training requirements for third-party vendors and requirements for the Ability to Repay rule. Also addressed are higher-priced loans, credit verifications and refinances.
HUD Clarifies Reporting Requirements for Mortgagees
The Department of Housing and Urban Development has outlined reporting requirements for mortgagees that discover noncompliance, fraud or misrepresentation on endorsed loans.