Identity verification

Scams in which a real person’s information is used to create fictitious businesses or individuals have led to $6 billion in credit losses. The Federal Reserve has developed a standard definition for synthetic identity fraud so lenders can distinguish it from traditional identity theft.

In too many places, identity verification and other vetting is still done manually, says Signicat's John Erik Setsaas.

The average number of attempts to defraud mortgage companies each month increased by 42% this year and hit the smallest businesses hardest, according to LexisNexis Risk Solutions.

Linda Lacewell, New York’s superintendent of financial services, said the CFPB's debt collection proposal does not go far enough to protect consumers.

Larger mortgage companies are paying less than other creditors when fraud occurs, but the expense is still detracting enough from their revenue to cause concern.