Fraud Prevention and Best Practices

Be aware of these types of scams and schemes.

Sad to say, fraudsters are creative and energetic. So if you’re in the mortgage industry, you need to stay on top of what they’re up to – and what they’re planning next.

Graphical image of the definition of falsify.

True Lies: The Lies Caught Up With Her

Liars will go to great lengths to deny wrongdoing. So what do you do when someone vehemently claims innocence, yet your suspicions remain?

Business man in a suit talking on the phone.

True Lies: When They’re Not Who They Say They Are

What if the person applying for a loan isn’t who they say they are? Here’s a new twist on misrepresentation we recently investigated.

Woman at home office while working at her desk on a computer.

True Lies: Allies in the Fraud Fight

Our QC and SFFR teams work together closely to identify fraud and reduce the risk it poses. Here, we look at one real-world example.

Fraudcast Episode 2: Investigating Suspicious IRS Transcripts

Even with trusted sources like tax returns, what you see isn’t always what you get.

An image of document placed on a desk titled Child Support Agreement with a pen on top.

True Lies: A Child Support Ruse

In two recent cases, we found fraud in an unsuspected place – child support documentation used as borrower income.

True Lies: When Employers Twist the Truth

Two borrowers. One employer. Different paystubs. And that was just one example of income misrep we investigated.

Fraudcast: Episode 1 – Investigating Income Misrepresentation

We share stories from the field as our investigators fight income misrepresentation.

A man sits at his desk reviewing documents. A laptop, coffee mug and a notepad are on the desk.

True Lies: Forged CPA Letters in 10 Loans

A loan officer falsified CPA letters, casting doubt on the veracity of other information contained in the associated loan files.

A man stands a lobby area in a tall building while using his phone.

Fraud Watch: Recognize Phone Spoofing

Imposters posing as Freddie Mac representatives are offering consumers a low interest rate loan and other false promises.

A business woman sits at her desk with a tablet while taking notes with her pen on a notepad.

True Lies: No One Benefits from Falsified Benefits

Benefits letters from federal government agencies and employers are often used to qualify a borrower’s eligibility for a home loan.

A blue house with a walkway and green lawn

True Lies: Reigning in Reverse Occupancy

Our investigator discovered that loan officers at a mortgage brokerage were falsifying occupancy, income and insurance information.

A professionally dressed in an office reviewing 2 documents with one in each hand.

True Lies: Suspiciously Similar Paystubs

A processor fabricated paystubs, with matching font and format for multiple borrowers, as well as identical handwriting on borrowers’ VOE.

A medium stack of documents on top of each other on a desk.

True Lies: Beware Phantom Employers

A broker facilitated the origination of numerous loan packages with fabricated companies borrowers claimed as their employers.

A man with a blue shirt making notes on a sheet with a white pen.

True Lies: Falsified College Transcripts

Two mortgages originated by the same loan officer had almost identical borrower profiles, and both borrowers claimed to be recent college graduates.