Regulators and secondary market investors are requiring originators to validate more of the borrower and property data using independent third-party sources to help combat this trend. With the changing regulations loan officers must be constantly aware of growing fraud trends.
Approximately 60% of mortgage fraud includes ID discrepancies. It is a good idea to implement an automated investigation of the borrower’s identity into your best practices. Utilize a system that instantly searches millions of databases and validates the person’s name is actually connected to the social security number, address, phone number, date of birth, etc. This will allow a lender to easily catch and circumvent high-risk identity mortgage fraud in close to 9 out of 10 instances.