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Report: Mortgage Fraud Risk on the Rise

""Kroll Factual Data, Inc."":http://www.krollfactualdata.com/ found risks in mortgage applications appears to be increasing. The company recently revealed that the loans it processes had a 1.3 percent increase in the possibility of fraudulent activity in the second quarter compared to the previous quarter.

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""With rates at all-time lows, the volume of loan applications in the second quarter was extremely high, putting even greater pressure on mortgage lenders,"" said Rod Bazzani, president of Kroll Factual Data.

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Aside from the high volume of mortgage applications in today's low mortgage rate environment, the company pointed out that lenders are also dealing with more stringent lending requirements.

Kroll Factual Data has developed advanced proprietary algorithms, deployed through its risk analysis and verification engines, which evaluate information provided by the applicant to identify indicators of fraud.

""With our risk analysis and verification engines, we have the ability to spot potential fraudulent activity based on alerts triggered by the applicant-provided information and then provide those alerts along with recommended remediation actions to our clients, helping them mitigate risk and operate more efficiently,"" Bazzani added.

Indicators of potential fraud include possible occupancy/straw buyer misrepresentation; identity misrepresentation; Social Security number discrepancies; and personal information discrepancies, such as name, age, and contact information.

Based in Loveland, Colorado, Kroll Factual Data is a provider of independent verification services to mortgage lenders, banks, credit unions, and property management firms.

About Author: Esther Cho

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