The mortgage industry – including escrow services, title companies and notaries – must act to enhance mortgage fraud prevention and react quickly to new threats as criminals continue to become more creative and efficient in their use of digital technology to commit mortgage fraud. The most common mortgage fraud method? Using fake/stolen identification documents to take out fraudulent mortgages, which costs the industry billions.
Mortgage fraud continues to be an escalating problem in the United States. Virtually all law enforcement and industry statistics indicate an upswing in mortgage fraud activity. Suspicious Activity Report (SAR) mortgage fraud filings from financial institutions increased 36 percent from 2007 to 2008. At least 63 percent of all pending FBI mortgage fraud investigations during 2008 involved dollar losses totaling more than $1 million.
Because mortgage companies issue credit, they must comply with complex regulatory requirements to validate whom they conduct such credit transactions with which is why immediate ID verification of authenticity is necessary to stop theft. Regulatory examples include the Fair Credit Act, the “Red Flag Rule” mandates associated with the Free and Accurate Credit Trade Act, and any surviving provisions of the Real ID Act. These combined legislative directives stipulate that issuers of credit must proactively involve themselves in the fight against identity theft by creating procedures, documented with step–by–step instructions, for how to validate ID documents of any individual applying for and being issued credit, and to maintain records.
FraudFighter enables Mortgage Companies to immediately verify the authenticity of identification to stop crime before it can occur with a quality multi–layer mortgage fraud prevention program that detects financial crime instantly. FraudFighter, a division of UVeritech, recommends and implements proven solutions designed to prevent mortgage fraud related theft with easy to use, inexpensive and reliable protection controls. Fraud Fighter™ quickly eliminates theft related to fraud and acts as a visual deterrent to stop fraud.