"Identify Theft" Mortgage Fraud Scammers Arrested -
While preparing the loan applications, the name and social security number of another individual were used without that person's knowledge, input or authority, identity theft
Read the whole story http://tinyurl.com/ycs3osr
We should all recognize individuals commit the act of fraud not companies. Every part of the mortgage lending process presents another window of opportunity for people in our industry who, by the very nature of their job description, are exposed to unscrupulous loan originators, builders, real estate agents, borrowers, processors, underwriters, appraisers, lender account reps, and title closers. Each one of these positions or areas, needed to obtain a mortgage, leaves an opportunity for fraud!
Every company should use a "Clear to Close," or some variation thereof, and then educate the staff on how to properly implement the plan. With a proper system in place those who would commit fraud would at least think twice before doing so, and possibly be caught along the way, this would happen with stop-gap measures in the design of a proper mortgage fraud prevention plan.
We must be vigilant against fraud, recognizing its signs and taking proactive, definite, and realistic steps to not only prevent it but also punish it.
It starts with me.
It starts with you.
It starts with us...
You are all encouraged to report any suspected mortgage fraud activity to authorities, www.PreventLoanScams.org
Michael S. Richardson
Director/Mortgage Fraud Services
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