The Mortgage Bankers Association says nonbank lenders are willing to file suspicious activity reports to curtail fraud in the industry, but the trade group wants the Financial Crime Enforcement Network to include more data fields in its reports so responders can supply identifying information.
In particular, MBA wants the data fields to provide slots for information on mortgage brokers, appraisers, and other participants who might be involved in suspicious transactions.
"MBA believes SAR data fields should be tailored to the real estate finance industry so that the most relevant information regarding potential money laundering or fraud against lenders may be reported," the trade group says in a comment letter. "Such tailoring should allow for the identification of other parties involved in the transaction, such as real estate and title agents."
In December, FinCEN, a bureau of the U.S. Treasury Department, issued a notice of proposed rulemaking that would require mortgage brokers and independent mortgage banking firms to file suspicious activity reports. (Banks and their mortgage subsidiaries currently file suspicious activity reports.)
"MBA supports FinCEN's proposal to expand its anti-money laundering enforcement programs to reduce mortgage fraud against mortgage lenders through the SAR reporting requirement," it says in a Feb. 4 comment letter.
Such an expansion would cover an estimated 25% of mortgages originated in the U.S., MBA estimates.
