The risk of mortgage application fraud rose along with an increase in purchase loan applications. Click through to learn which metro had the greatest increase in the fraud risk.
Read More »Study: Wichita has the Highest Mortgage Fraud Risk
The risk of mortgage application fraud is rising across the country according to a recent study. Click through to learn which areas are most prone to this risk.
Read More »Defect Frequency in Mortgage Apps on the Rise
The frequency of defect, fraud, and misrepresentation in information submitted during the mortgage application process has increased over the past year according to the First American Loan Application Defect ...
Read More »Identity and Wire Fraud Are a Problem the Industry Cannot Ignore
Identity fraud could cost the industry and homebuyers billions. The first step to addressing the problem is acknowledging just how big the stakes are.
Read More »CertifID Fights Wire Fraud and Offers a $500k Guarantee
Wire fraud is a massive and continual threat in the mortgage world. After suffering their own losses, one title company decided to fight back with their own fraud prevention platform.
Read More »RBS Reaches $35M Settlement for RMBS Fraud Suit
While the agreement resolves the allegations and has a non-prosecution clause, the bank is look at 10 years without a profit.
Read More »BofA Seeks to Overturn Fraud Verdict in ‘Hustle’ Case
Lawyers for Bank of America have filed to overturn a jury verdict last year that held the bank liable for fraud over faulty mortgage-backed securities sold by its Countrywide unit. In their motion, BofA's lawyers argue the government failed to prove the loans involved in the case were advertised as being higher quality than they were.
Read More »OIG: GSEs Ignored Red Flags in TBW Fraud Scheme
A report filed last week by the Office of Inspector General (OIG) of the Federal Housing Finance Agency (FHFA) states that Freddie Mac and Ginnie Mae ignored "red flags" with regards to a mortgage fraud scheme perpetrated by lenders Taylor, Bean & Whitaker and Colonial Bank. In addition to the losses absorbed by Freddie Mac (almost $2 billion) and Ginnie Mae (almost $1 billion), private banks that conducted business with Taylor Bean lost billions.
Read More »Atlanta Lender to Pay $19.3M in Alleged Bait and Switch
The Consumer Financial Protection Bureau has targeted an Atlanta-based online lender to pay up for its role in an alleged bait and switch scheme. AmeriSave, its affiliate, Novo Appraisal Management Companies, and the CEO/owner of both companies, Patrick Markert, were penalized for misleading consumers by advertising fraudulent low rates and then failing to honor those rates once the consumers were locked in.
Read More »Former RMBS Trader Found Guilty in TARP Fraud Case
The Special Inspector General's office for the Troubled Asset Relief Program (SIGTARP) announced the fraud conviction of a former managing director at New York-based Jefferies & Co. According to Special Inspector Christy Romero, Jesse C. Litvak misrepresented asking prices on residential mortgage-backed securities (RMBS), pocketing the profits. "Trading in mortgage securities can be a complicated business, but what the defendant did was simple—he lied to, defrauded, and illegally overcharged customers out of pure greed to benefit Jefferies and himself," Romero said.
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