More Purchase Applications Means Greater Fraud Risk for Lenders

National Mortgage News, June 30, 2016–Finkelstein, Brad

Despite writing higher-quality loans in recent years, the mortgage industry is facing an upswing in loan quality risks as it does more purchase loans and fewer refinancings. Judging from discussions at May’s Mortgage Bankers Association National Secondary Market Conference, there is a perception that “fraud has gone away and it’s under control and we don’t have to worry about it,” said Ann Fulmer, an industry expert on fraud issues.