What is mortgage fraud? The act of intentionally facilitating the use of, or using, any misrepresentation, misstatement or omission in a deliberate manner, being aware of the same to contain such, during a mortgage lending process, with the aim that the mortgage lender, borrower or any other participant to the mortgage lending process relies upon it.
Sometimes mortgage fraud involves identity theft. This means consumers must be leery of people who may purchase a house in their name. Today’s lending standards are much more lax than they were three decades ago, creating more opportunities for scams.
First time home buyers, low income buyers, naïve buyers and illegal immigrants are often targets of predatory lenders.
Be aware of lenders who:
- Target poor neighborhoods
- Offer financial incentives for providing employment records
- Offer financial incentives to find purchasers
- Practice double closings: The buyer signs several mortgages on the same home which quickly settle, thus preventing lenders from catching wind of the fraud.
"Demand for consumer financing in the U.S. is growing at more than 5 percent per year, challenging lenders to adapt to rapid customer acquisition and an ever-changing environment," points out iovation Director of Business Development Steve Hanson. He adds: "Therefore it's essential that lenders stay apprised of the latest industry developments and regulations so they can develop customized strategies that benefit their clients and business."
A giant step in putting a plug in mortgage fraud is to identify the devices responsible for committing fraud.
With a combination of advanced device identification, real-time risk evaluation and shared device reputation, iovation provides protection from fraud to online businesses and their end users.
iovation’s device reputation databases is the largest in the world, protecting over 10 million transactions, halting an average of 200,000 fraudulent activities on a daily basis.
Robert Siciliano, personal security and identity theft expert contributor to iovation. He is the author of 99 Things You Wish You Knew Before Your Mobile was Hacked! See him knock’em dead in this identity theft prevention video. Disclosures. For Roberts FREE ebook text- SECURE Your@emailaddress -to 411247