Mortgage fraud can cost lenders huge financial losses on defaulted loans.
Phony documents, doctored tax returns, falsified employment and salary information, and inflated property value appraisals have all been used to fraudulently obtain mortgages. With a competitive real estate market, the demand for mortgage business is high, which increases the likelihood of unscrupulous and questionable practices. While automated underwriting and credit scoring systems provide increased volume and lower costs to lenders, they cannot verify the information reported on a loan application. Because perpetrators of fraud often have no prior history, these databases are not enough to contain the risk of defaulted loans. BRI offers customized verification services to detect incongruent or misinformation in mortgage applications.