If one had assumed the fraudulent practices of the subprime mortgage origination are history should heed the following report: Mortgage fraud jumps by 45% on fewer loan applications in U.S., per the Mortgage Asset Research Institute (MARI). Reported incidents of mortgage fraud in the U.S. increased by 45 percent on fewer loan applications in the second quarter of 2008 from a year ago, according to a new report released today by the Mortgage Asset Research Institute (MARISM), a LexisNexis service.
The MARI Quarterly Fraud Report is based on data submitted by MARI subscribers on loans originated in the second quarter of this year that have since been classified as fraudulent. Key findings from the MARI Quarterly Fraud Report include that fraud most often occurs at the beginning of the loan process. More than 65 percent of fraud incidents are attributed to “General Application Misrepresentation” – a trend that has continued over the past two quarters. General Application Misrepresentation is when information such as when an incorrect name, occupancy or asset is potentially misrepresented during the application process. This fraud trend is followed closely by reported misrepresentations related to “Income” at 36 percent of Q2 applications and “Employment” at 20 percent of Q2 applications. The MARI Quarterly Fraud Report is available on MARI’s Web site at http://www.marisolutions.com/resources-news.asp
BIIA Newsletter November 2008 Issue