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With mortgage fraud on the rise, it’s more important than ever before for mortgage companies, independent mortgage bankers, credit unions, and all lenders to prevent fraud at the earliest stages of the mortgage process. So, how can you minimize risk and protect yourself, your borrowers, and your organization? Continue reading to find out how other lenders are dealing with potentially fraudulent activity every day.
Marc De Diego Ferrer
Marc De Diego Ferrer is a registered real estate agent, tax advisor, and founder of MCA Assessors.
Request an Endorser
This risk minimization technique may be applied, especially when an applicant has no credit history or convincing financial statements. Banks request an endorser who is willing to sign, saying that they would take responsibility for loan repayment if the applicant fails to repay it on time. This measure minimizes the risk of loaning money to applicants with bad credit histories or committing fraud. Endorsers should preferably be family members with the ability to repay loans.