Slideshow Roundtable: Scammers Remain Ahead of Mortgage Regulations

  • May 10 2013, 12:05pm EDT

Since the economic downturn, mortgage fraud has been a prevalent issue plaguing the housing industry for several years. It seems that every single time new regulations are issued to try to mitigate fraud, scammers always are one step ahead of financial institutions and are already preparing their next scheme. National Mortgage News hosted a roundtable at the Mortgage Bankers Association's 2013 National Fraud Issues Conference in Hollywood, Fla. where industry leaders discussed the latest trends in mortgage fraud and what lenders and servicers can do to detect illegal loan applications they receiver from a borrower. Photo: Mike Brown

Even though there is an impression out there that mortgage fraud is decreasing, Becky Walzak, president of rjbWalzak Consulting, believes this is misleading. Photo: Mike Brown

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Tim Anderson, director of compliance services for DocMagic, said if you don't have a way to systematically automate the loan application process through databases, mortgage fraud is only going to get worse. Photo: Mike Brown

The mortgage industry needs to be proactive and create standards, said Lisa Binkley, senior vice president of business development and mortgage solutions for Platinum Data Solutions. Photo: Mike Brown

Ed Gerding, senior fraud and risk strategist for CoreLogic, is hearing that a top concern for lenders in 2013 is not fraud, but actually compliance, which could lead to the fraud "creeping back in resulting in the whole mess exacerbated again." Photo: Mike Brown

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Even though technology is great at capturing inaccurate information, the human element is still important to catching fraud, said Andrew Liput, president of Secure Settlements. Photo: Mike Brown

Training underwriters to identify red flags during the loan application process is critical as we go from a refund market to a purchase market, according to Connie Wilson, executive vice president of Interthinx. Photo: Mike Brown

Darius Bozorgi, president of Veros, mentioned that automation allows people to see things they never saw before. Photo: Mike Brown