Software touted as tool to uncover mortgage fraud

BasePoint's BrokerWatch uses pattern recognition technology to flag suspicious loans

When mortgage fraud schemes unravel, their lack of sophistication is often surprising. Borrowers’ incomes may have been falsified and property values grossly inflated, but nobody seems to notice anything’s amiss until the loan payments stop coming.

Banks routinely open their vaults and make bad loans based on false information provided by real estate professionals, including mortgage brokers, appraisers and closing agents.