Industry News

Industry forms ‘fraud squad’ to combat lender losses

Coalition Against Broker Fraud aims to wipe out insider mortgage fraud

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As reports of real estate fraud persist, a group of industry leaders has formed the Coalition Against Broker Fraud to combat mortgage firms' mounting losses from insider mortgage fraud. In a May 2005 report, the FBI estimated that insiders accounted for 80 percent of the $86 billion in mortgage fraud losses in 2004. The coalition, formed in early 2006, has announced the addition of two new advisors that will help guide the group's efforts. The new advisors are Jim Hodge, the chief executive officer of Allied Home Mortgage, and Bobby Gentry, the president of the West Coast Chapter of the Florida Association of Mortgage Brokers. "With the invaluable guidance of our new advisors, we're undertaking new initiatives to help weed out fraud in our industry," said Mitch Freifeld, co-founder of the Coalition Against Broker Fraud. "As Allied's CEO, Jim has gained invaluable insights into how to identify and sift out mortgage fraud. He'll be helping us as we continue to expand and fine-tune our...