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Blog Entries for Bridget Berg

U.S. Housing Policy Outlook: October 2017

Mortgage Fraud Risk is on the Rise

Bridget Berg    |    Videos

Bridget Berg Video Blog

Overall fraud risk increased by almost 17 percent year-over year, and is now at its highest level since CoreLogic created the index in 2010.

Keep in mind, however, that in historical terms, fraud, overall, is still relatively low, given the tighter underwriting since the mortgage crisis, and the amount of rate and term refis over the past few years.

But...

The Delay in Discovering Mortgage Fraud - Or What You Don’t Know for Too Long Can Hurt You

Part III of III in a series

Bridget Berg    |    Mortgage Performance

Mortgage Fraud SAR Activity

Unlike other types of financial fraud, mortgage fraud is rarely identified quickly. The problem with the lag in discovery is that by the time a financial institution gets the feedback, it’s often too late to mitigate the situation. Another issue is that the lag time gives management a false sense of security about their true fraud risk. As a result, poor practices or an undetected scheme...

The How, What and When of Mortgage Fraud Discovery: 6 Touchpoints Over the Life of a Loan

Part II of III in a series

Bridget Berg    |    Mortgage Performance

Six Touchpoints

Based on my discussions with industry participants over the years, it’s safe to say most people believe that discovering fraud is mainly an origination workflow event. However, the truth is fraud can be discovered at a number of events in the life of a loan. Here’s a quick summary of where and when fraud can occur within your current workflow.

1. Prior to loan closing in...

Five Reasons Why Mortgage Fraud is Hard to Detect

Part I of III in a series

Bridget Berg    |    Mortgage Performance

House

“It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so." - Mark Twain.

Unlike most common forms of financial fraud, mortgage fraud takes a long time to present itself, and as a result can lull lenders into a false sense of security....

Prepare for Higher Fraud Risk in 2017

The Warning Lights Keep Flashing

Bridget Berg    |    Mortgage Performance

Lights

At the end of 2016, the CoreLogic National Mortgage Application Fraud Risk Index matched its previous high level of 122. CoreLogic has been gauging fraud risk on this Index since Q3 2010, with a starting benchmark of 100. We anticipate the Q1 2017 Index, due out April 20, will record the highest level to date, likely breaking through the 130 mark.

As we’ve noted in the past, the...