Despite government and industry efforts to curb mortgage fraud, there are still lending entities who aren’t required to file SARS (Suspicious Activity Reports) like traditional banks do. FinCen recently proposed new regulations designed to close that gap; suggesting that non banking lenders and originators comply with the same compliance requirements already in place for the traditional banking entities. This has me thinking about what effect that will have on the mortgage fraud epidemic. While it is not going to miraculously solve the problem, the increased reporting, financial analysis and investigation should aid in our battle against mortgage fraud and reduce some of the weak links being exploited by criminals.
Daniel W. Draz