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.
Wholesale AE, Broker-Husband Admit to Mortgage Fraud
A subprime wholesale lending account executive and her husband, who was a mortgage broker, have admitted to defrauding her now-defunct employer using fake income and employment documents.
Risk of Valuation Fraud Plummets
Prospective borrowers have recently escalated their efforts to deceive lenders about their income. But the risk of valuation fraud has greatly diminished.
Appraiser Testifies About Fraudulent Reports
While awaiting sentencing, himself, a Pennsylvania real estate appraiser testified at the trial of his former partner about how fraudulent appraisal reports with inflated values were created.
Mortgage Fraud Reflects Improvements in FL, Appraisals
Legal actions taken by the government against mortgage fraud suspects have been slowing. Reflected in the decline is a significant reduction in the level of appraisal fraud. Also impacting activity was Florida, where mortgage fraud reports on recent originations have plummeted from reports on earlier vintages.
Risk of Valuation Fraud Diminishes
The risk of mortgage fraud edged higher thanks to deterioration in occupancy fraud. But the risk of appraisal fraud was down on a quarter-over-quarter and year-over-year basis.
Mortgage Fraud SARs Sink
Reports of suspected mortgage fraud tumbled by a quarter last year thanks to fewer repurchases. The dollar amount of suspected mortgage fraud plummeted by nearly $10 billion.
Mortgage Fraud Prosecution Activity Up
Federal, state and local prosecutors picked up the quarterly pace of activity in mortgage fraud cases -- though actions were still low based on standards established since the financial crisis.