Comments on: Recent Mortgage Fraud Developments and Future Outlook http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/ Seattle's Leading Resource for Real Estate Information Mon, 15 Mar 2010 05:32:06 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Are you ready for FEMA Mortgage? | Seattle Real Estate ~ Rain City Guide http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-325403 Are you ready for FEMA Mortgage? | Seattle Real Estate ~ Rain City Guide Sat, 20 Sep 2008 19:03:15 +0000 http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-325403 [...] fraud was used on a mortgage now owned by Uncle Sam, the FEMA Loan Adjuster would determine if it was caused by the borrower or [...] [...] fraud was used on a mortgage now owned by Uncle Sam, the FEMA Loan Adjuster would determine if it was caused by the borrower or [...]

]]> By: Housing Bill is (f)law(ed) » Pasadena California Real Estate Blog http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-322543 Housing Bill is (f)law(ed) » Pasadena California Real Estate Blog Tue, 29 Jul 2008 22:02:22 +0000 http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-322543 [...] of all, if the homeowner acquired their mortgage through the stated or liar loan process, they need to go back and provide the supporting documentation showing that they indeed [...] [...] of all, if the homeowner acquired their mortgage through the stated or liar loan process, they need to go back and provide the supporting documentation showing that they indeed [...]

]]> By: Thayne Westerman http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-282879 Thayne Westerman Wed, 12 Mar 2008 00:03:16 +0000 http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-282879 Wow I had no idea! Punishment for this Fruad should be highly enforced. I find it hard to believe they even try or think they will get away with it. A total eye opener for me. Wow I had no idea! Punishment for this Fruad should be highly enforced. I find it hard to believe they even try or think they will get away with it. A total eye opener for me.

]]> By: Debbie H Wang http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-259058 Debbie H Wang Fri, 08 Feb 2008 23:33:15 +0000 http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-259058 It seems everybody is focusing on the sales/production, forgeting about the risk/consequence nowadays, even the AE/underwriters working for the lender. The recent mortgage fraud developments taught us a good lesson. Continuing education on Ethics should be required every time to renew MB/Lo license. Law should also enforce punishment for such fraud. It seems everybody is focusing on the sales/production, forgeting about the risk/consequence nowadays, even the AE/underwriters working for the lender. The recent mortgage fraud developments taught us a good lesson.

Continuing education on Ethics should be required every time to renew MB/Lo license. Law should also enforce punishment for such fraud.

]]> By: J. Finney http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-258999 J. Finney Fri, 08 Feb 2008 21:27:07 +0000 http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-258999 I think more checks and balances should be implemented, manual u/w, to clear up the short run on fraud in the industry which in turn would make long term effects on the industry minimual. I also agree that fraud is in all industries. As technology changes, the methods used by the those individuals commiting the fraud might become more obvious. It's a slow process but I think in the years to come fraud hopefully will decline. I think more checks and balances should be implemented, manual u/w, to clear up the short run on fraud in the industry which in turn would make long term effects on the industry minimual. I also agree that fraud is in all industries. As technology changes, the methods used by the those individuals commiting the fraud might become more obvious. It’s a slow process but I think in the years to come fraud hopefully will decline.

]]> By: DAN LE http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-249701 DAN LE Fri, 25 Jan 2008 00:28:16 +0000 http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-249701 I think underwriting should combine both automated and manual. Automated is to help screening and then underwriters should do all the paper reveiw manually. In the last couple years, it's been hard for LOs to compete when many are willing to commit frauds, but we should think about their consequences; it's better be safe than sorry. I think underwriting should combine both automated and manual. Automated is to help screening and then underwriters should do all the paper reveiw manually. In the last couple years, it’s been hard for LOs to compete when many are willing to commit frauds, but we should think about their consequences; it’s better be safe than sorry.

]]> By: Recent Mortgage Fraud Developments and Future Outlook | Mortgages For Self Employed http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-249503 Recent Mortgage Fraud Developments and Future Outlook | Mortgages For Self Employed Thu, 24 Jan 2008 17:01:23 +0000 http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-249503 [...] Recent Mortgage Fraud Developments and Future Outlook Before we use to rely on automated underwriting systems and credit scores we had humans who would carefully underwrite mortgage loan files. During the caveman human underwriter days, loan originators and loan processors knew that underwriters could make or break a file. An underwriter had god-like p… [...] [...] Recent Mortgage Fraud Developments and Future Outlook Before we use to rely on automated underwriting systems and credit scores we had humans who would carefully underwrite mortgage loan files. During the caveman human underwriter days, loan originators and loan processors knew that underwriters could make or break a file. An underwriter had god-like p… [...]

]]> By: Kary L. Krismer http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-236469 Kary L. Krismer Mon, 31 Dec 2007 07:17:02 +0000 http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-236469 Jillayne, funny! No interview. Jillayne, funny! No interview.

]]> By: Todd Carpenter http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-236441 Todd Carpenter Mon, 31 Dec 2007 06:14:33 +0000 http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-236441 I think it's fraud. Check that, I KNOW it's fraud. I also know that lenders are on to this, at least the few I have contacts with. I agree Jillayne, there will be more fraud, not less in the coming months. I think it’s fraud. Check that, I KNOW it’s fraud. I also know that lenders are on to this, at least the few I have contacts with. I agree Jillayne, there will be more fraud, not less in the coming months.

]]> By: Jillayne Schlicke http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-236435 Jillayne Schlicke Mon, 31 Dec 2007 05:55:33 +0000 http://raincityguide.com/2007/12/23/recent-mortgage-fraud-developments-and-future-outlook/#comment-236435 Todd, That was my first inclination; to believe that we'd see an INCREASE in mortgage AND ALSO real estate fraud during a market slowdown rather than a decrease. Commission salespeople get accustom to earning a certain dollar amount each month and it is painful when the flow of money is suddenly cut short. Todd, here's what concerns me right now. In a number of my classes, loan originators are telling me they are being solicited to do FHA loans for this broker or that wholesale lender, and they are being told "you don't have to be a W-2 employee, we'll just submit the loan under a different LO's name who IS a W-2 employee and then we'll just pay you on a 1099." The last time I checked the HUD manual, that would not fly with FHA. Same large, national broker, is telling LOs that they can originate loans in multiple states, and they don't have to be licensed in that state because "we'll just submit the loan under another LO's name who IS licensed in that state and pay you on a 1099." What do you think about all this? I am hearing this daily now. Todd,

That was my first inclination; to believe that we’d see an INCREASE in mortgage AND ALSO real estate fraud during a market slowdown rather than a decrease. Commission salespeople get accustom to earning a certain dollar amount each month and it is painful when the flow of money is suddenly cut short.

Todd, here’s what concerns me right now. In a number of my classes, loan originators are telling me they are being solicited to do FHA loans for this broker or that wholesale lender, and they are being told “you don’t have to be a W-2 employee, we’ll just submit the loan under a different LO’s name who IS a W-2 employee and then we’ll just pay you on a 1099.”

The last time I checked the HUD manual, that would not fly with FHA.

Same large, national broker, is telling LOs that they can originate loans in multiple states, and they don’t have to be licensed in that state because “we’ll just submit the loan under another LO’s name who IS licensed in that state and pay you on a 1099.”

What do you think about all this? I am hearing this daily now.

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