Mortgage fraud continues to plague the building. Perhaps only 20%
of fraud estate / Housing, as defined by the Federal Bureau of Investigation.
The reason that mortgage fraud to continue:
1) the rising cost of housing and the “American dream” for your own home.
2) Permits for mortgage brokers and intermediaries to be easy. Requirements for licenses require a higher education level of secondary education as a prerequisite for licensure and more stringent requirements, such as education pre-license test is increasingly difficult. This lead to a better person and less people in the real estate profession.
3) Lenders must offer a loan program is less, for example, stated income loans (some call it as loan income increased) and no doc (no documentation loans).
4) Most lenders require the IRS (Internal Revenue Service) Form 4506 to the end. Now, there is something that an insurer or lender may request information and stop the alias (another inflation) loan applications dead in his tracks. If they were on their tax return, whether it is possible that they lie on their mortgage application?
5) Lack of professional training programs in fraud real estate mortgage to be identified – is wishful thinking, because the privacy law – but at least to start. When the report of the situation guides suspected fraud to appropriate authorities.
6) credit reports and evaluation must be improved. Too often, I find that the errors on credit reports, for which the creditor does not report information in a timely and accurate. For example, a customer has paid at the end of an action for collection in February ’06. The agent for collection at the end of April shows a number of bills pending the current date. Yes, the report of the payment, but not to remove part of the drive.
7) Lack of control points in the existing system.