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 registry of mortgage brokers.”

Gentry will help spread the word about the coalition and expand the group’s growing list of suspected fraudsters, Freifeld said.

Members of the mortgage industry’s new “fraud squad” have created a comprehensive registry that includes exclusionary or disciplinary lists from public records of regulatory agencies, licensing boards, GSEs, credit bureaus and/or other mortgage industry organizations. The registry aims to stop a recurring problem among brokerages, which involves brokers switching branch organizations once they are suspected or known to be committing fraud within one organization.

Through this registry, Coalition Against Broker Fraud members have merged historical data and have added external public data to yield a comprehensive insider fraud resource. Approximately 10,000 records currently exist in the registry.

Coalition members include Global Branch Solutions, American Pacific Mortgage (co-founder), Advantage Credit, BNC Mortgage, NFM, Freedom Mortgage, American Home Mortgage, AllFund, Home Capital Funding, America’s Mortgage Broker, American Home Loans, Radian, Challenge, and Apex.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription