You’re Making a Difference Reducing Mortgage Fraud! Want to Know How?

So you may have noticed that we often blog on the topic of mortgage fraud. This is because we are firm believers that awareness is the first step towards prevention. Fraudsters are always trying to stay one step ahead and so doing your best to be well-tooled to spot possible fraud can help you protect yourself, your lenders and clients.

As recently as this past summer a major Canadian alternative mortgage lender admitted to having suspended 45 mortgage brokers after uncovering evidence that mortgage fraud was taking place. 

In this instance the mortgage fraud related to fake employment letters that overstated the borrower’s income being provided to obtain mortgage approvals. In this instance, through their own audit, the lender uncovered the fraud and dealt with it.

We often suggest education, discussion, collaboration, technology and tools as being the main areas that can really lead to an overall reduction of fraud in the mortgage industry. It seems that Genworth has produced some Canadian statistics that validate this assumption.

In the same article in the BNN that discussed the incident that occurred with the lending institution discussed earlier, Stuart Levings, CEO of Genworth MI Canada, Canada’s largest private insurer, seemed to indicate that fraud is on the decline in Canada.

The article begins “Mortgage fraud has been on the decline in Canada in recent years thanks to tougher regulations, better training and new technology, the head of Canada’s largest private mortgage insurance company said Wednesday.”

A brokerage, especially super brokerages with franchises and established brands, have to lead by example, and so if Genworth is seeing a decline in fraud overall, we hope that many are.

Super brokerages who mandate continuing education, even over and above what is required by FSCO, and also mandate the use of underwriting tools to ensure stronger underwriting, make a massive difference when it comes to combatting fraud.

Courses like the ones offered by CAAMP and IMBA show agents how they can identify fraud and tools like Purview enable them to validate the information in their applications so that if something fishy does come up, they are positioned to address it.

Continuing the above practices really help the industry as a whole because not only are you the agent or brokerage offering a better service and maximizing profitability, you are protecting your other partners who may become a party to the deal you originate with a fraudster.

This was a great article and we blogged about it because it is definitely worth a read and we are also interested in your thoughts… You can read the article here: http://www.bnn.ca/News/2015/8/5/Mortgage-fraud-on-the-decline-in-Canada-Genworth-CEO-says.aspx.

Want to know more about how Purview For Mortgage Brokers can help you combat mortgage fraud? Call us today at 1.855.787.8439.