Industry News

Lenders victimized in real estate fraud

Mortgage bankers urge stronger enforcement, communication

The Mortgage Bankers Association today testified before the House Financial Services Subcommittee on Housing and Community Opportunity, urging stronger enforcement, better communication between law enforcement and the industry, and increased innovation to identify and prosecute those who commit fraud against mortgage lenders. "Today, mortgage industry leaders are extremely concerned that mortgage fraud against the lending community has grown quite large in the past several years with devastating consequences to lenders and, depending on how the fraud is perpetrated, to taxpayers, consumers and communities," stated Marta McCall, senior vice president for risk management at American Mortgage Network Incorporated, in her testimony on behalf of MBA. Mortgage bankers play a central role as risk intermediaries, allowing funds to flow from the capital markets to consumers. Lenders underwrite the loans, and then extend credit on terms and conditions commensurate with the level of risk invol...