Mortgage Fraud on the Rise
Mortgage Fraud is on the rise. Fannie Mae has released a warning for California, but this could be happening anywhere. The National Real Estate Post (Frank Garay and Brian Stevens) have a short 6 minute video titled “Red Flag Fraud Warning from Fannie Mae” about the warning.
Also on the video, markets with declining values have been discovered. Here in Virginia, appraisers have also noted some areas have taken a down turn over the past 4-6 months. Our purpose of sharing this with everyone is not to spread doom and gloom, but to remind each of us to really take the time to perform a proper analysis. Don’t assume anything!
Watch The National Real Estate Post video below.
For more information on the 10 U.S. Metros where home prices are falling the most, click here.
Excerpt from Fannie Mae’s Mortgage Fraud Alert:
Misrepresentation of Borrower Employment Scheme
Fannie Mae’s Mortgage Fraud Program (MFP) alerts the industry to potential and active mortgage fraud scenarios. This alert relates to a scheme involving misrepresentation of borrower employment.
Southern California, Los Angeles County
Loan common denominators / characteristics
Fannie Mae’s Mortgage Fraud Program has identified several entities listed on loan applications as places of employment that appear to be fictitious. The following list contains 34 entities / businesses that were listed as the borrower’s purported place(s) of employment but whose existence Fannie Mae could not confirm… Read more »
On June 7th, VaCAP representatives will be attending The Appraisal Foundation Advisory Council and Industry Advisory Council joint meeting. This is a full day event with Property Waivers and Hybrid Appraisal liability being key areas of discussion. We will have a full report of the meeting to share after the meeting.
Coester… Carson… Trump?
The Voice of Appraisal has a new show revolving around CoesterVMS and HUD. We will not even comment, but recommend every appraiser listen to the show.
Listen to E202 here.
Fannie Mae Mortgage Fraud Alert: Misrepresentation of Borrower Employment Scheme