Let Our Fraud Detection Tools Unmask Them!
Picture this: a seemingly ideal mortgage application, with a dream home on the line, and a hidden web of deceit waiting to unravel…
In June of 2023, Fannie Mae uncovered a troubling case in Northern California. It was a story where commonality among real estate agents, fabricated bank statements, and borrowers with no alternative sources of income converged into a disturbing narrative of misrepresented child support income.
Fast forward to August, and Fannie Mae discovered another alarming case, this time in suburban Atlanta, Georgia. It featured targeted identity theft, cash-out mortgages on homes with no existing mortgages, and a host of other deceptive tactics. These are not isolated incidents; they are part of an escalating trend in mortgage fraud that demands our attention.
Credit Washing and Employer Fraud Increasing
The following FinCEN SARs fraud statistics were shared by the FBI during the 2023 MBA Risk and Compliance conference. Over the past year:
- There has been a 500% increase in credit washing activity (false consumer ID theft claims and disputes on all tradelines)
- 11k fake employers have been included in mortgage SARs
In addition, fraudsters are becoming increasingly adept at creating synthetic identities using Consumer Privacy Numbers (CPNs). They use stolen Social Security numbers, oftentimes of deceased children under the age of 12, and include true data attributes such as address, phone, and employment. This data is purchased on the dark web for large sums of money and is used by fraudulent companies, straw buyers and immigrants seeking to build credit.
Fraudsters and their schemes are constantly evolving. That’s where Xactus comes in. Our Fraud ReportsX help lenders identify and reduce the occurrence of fraud throughout the mortgage process.
Xactus Fraud ReportsX
Our one-stop fraud risk management solution, quickly and easily helps you identify problems and data errors on mortgage applications. Fraud ReportsX can be customized to meet your needs, and you can tailor your fraud alerts too – assigning low, medium, or high risk!
Warnings and areas of concern are provided in three, separate, easy-to-read reports:
| 1. Borrower Detail Report – Validates an applicant’s identity, including name, address, Social Security number, birthdate, phone number, and other custom data. |
| 2. Property Detail Report – Validates a property actually exists, confirms characteristics of the dwelling, substantiates previous ownership, determines whether the property is at risk for flipping, and other custom data. |
| 3. Mortgage Participant Detail Report – Provides the results of a comprehensive examination of appraiser licensing data and industry watch lists, including OFAC, EPLS, Mortgage Sanctions, ASC National Registry of Appraisers, HUDLDP and Financial Sanctions. |
And unlike competing products, Xactus DOES NOT require long-term commitments and there are no minimums – so there is no risk in trying it!
Schedule a consultation with us to see how we can customize a fraud solution for you. Contact your strategic account manager to get started or click here to schedule a demo.
