For The Banks: Lots Of Fraud Prevention Tools
Underwriters have great tools available these days. I just spoke with one of our favorite mortgage bank underwriters on the subject. They can order information on you, your property, its renter, seller, etc. All in all 145 alerts can be provided. These may raise red flags on your income, employement, legal residency, likelyhood of occupying, if you are a flipper, illegal alien, on the federal terrorists watchlist, really self employed to name a few.
In last wednesdays article “Troubled” Corey Lerner wrote this comment:
Name: Cory Lerner | E-mail: cory@profinancenow.com | URI: http://www.theequityladies.blogspot.com | IP: 66.236.122.94
Hi -as a mortgage consultant, I am constantly hearing stories of what a poor job one of our ilk did - lying about a rate, not disclosing this or that. It really bugs me but there is nothing I can do about others in our business.
However, I can say that I have not yet had the experience you have had with outright lying on the part of the borrower. Your reputation, my reputation are really hit hard by this thing. Besides making it clear in the first interview about how I do business and that fraud will not be tolerated, I’m curious to know how others handle that issue. Cory Lerner
I think the answer to Cory’s question is at the bank level. With the tools available they use the red flags to require documentation that will help clarify against fraud.
The amazing thing is, that if one gets away with it at the loan approval level they have to live with the pressure that they have committed a crime and are on their way to free room and board and special bracelets.
Thanks for your response. We can hope that the banks will do most of the heavy lifting to find borrower fraud. What concerns me further is that I may be taken down with them in the process. It’s sort of like being sued for something. Whether or not you are guilty of the accusation, you still have to spend your time, money and good name to clear yourself.
I guess that’s the risk we take in this business (that and good E&O insurance!), but you can bet I am even more diligent these days as the market is tightening up. Cory Lerner