Mortgage Fraud Losses Continue to Mount for Financial Institutions

Posted on February 18, 2010 by Fred Rivera

A February 16, 2010 report  released by the U.S. Federal Financial Institutions Examination Council (FFIEC) confirms that financial institutions continue to suffer mortgage-fraud related losses.  The council, which is comprised of the U.S. Federal Reserve, the Federal Deposit Insurance Corp., the National Credit Union Administration, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the State Liaison Committee, did not quantify the monetary losses, but noted that "[f]inancial institutions have experienced an increase in the number, volume, and types of mortgage fraud schemes resulting in significant losses."  The report also identifies "red flag" indicators of possible mortgage fraud or of the risk of potential exposure to mortgage fraud, and includes a set of best practices illustrating how to detect and prevent mortgage fraud at regulated institutions. The report is the result of a 2009 symposium that was aimed at helping examiners identify various fraud schemes.

A copy of the report is available at the FFIEC's website:  The Detection and Deterrence of Mortgage Fraud Against Financial Institutions.

 

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Waters & Kraus - March 5, 2010 11:22 AM

Thanks for sharing report. It is full of insightful information.

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