Identity theft in mortgage transactions is a growing concern that can lead to significant financial losses and legal complications. At Frasco® Mortgage Risk Mitigation, we specialize in comprehensive investigative services to identify and prevent such fraud. Here are some effective strategies to safeguard against identity theft in mortgage transactions:

 

Forensic & Fraud Reviews

  • Borrower Interviews: Conduct thorough interviews with borrowers and other relevant parties to verify the authenticity of the information provided.
  • Employment and Income Verification: Confirm employment history and income details to ensure they match the documentation submitted.
  • Reverifications of Deposit & Source of Funds: Verify the reported assets and the source of the down payment to detect any discrepancies.
  • Occupancy Verification: Determine if the borrower intends to occupy the property as their primary residence or if there are misrepresentations regarding occupancy.
  • Undisclosed Debt and Mortgages: Identify any debts or mortgages that were not disclosed at the time of loan origination.
  • Reverification of Origination Documents: Reverify documents such as verification of rent, mortgage, and other letters of explanation to ensure their accuracy.
  • Straw Buyers: Investigate if the transaction involves a third party not identified in the loan application.
  • Identity Theft Verification: Validate claims of identity theft and assist victims in reporting and investigating the perpetrator.

 

Due Diligence & QC Audits

  • Sample Selection: Choose a representative sample of loans for detailed review.
  • Forensic Fraud Review: Conduct in-depth reviews to uncover any fraudulent activities.
  • Data Integrity Check: Ensure the accuracy and consistency of data across all documents.
  • Reverification of Critical Documents: Reverify essential documents to confirm their authenticity.
  • Policies and Procedures Review: Assess the effectiveness of existing policies and procedures in preventing fraud.

 

Loss Mitigation

  • Reverification of Income & Assets: Confirm the income and assets used for loan qualification.
  • Confirmation on Hardship Reasons: Verify the reasons for financial hardship, such as illness, job loss, or natural disasters.
  • Evaluation of New Credit Report: Review the borrower’s credit history for any undisclosed accounts or repayment issues.
  • Interviewing Relevant Parties: Conduct interviews with borrowers, sellers, real estate agents, and other involved parties.
  • Social Media Searches: Use social media profiles to identify any misrepresentations.
  • Occupancy Verification: Confirm the borrower’s occupancy of the property to prevent occupancy fraud.

 

Verification Services

  • Employment Verification: Verify the borrower’s employment status and history.
  • Income Verification: Confirm the accuracy of the income reported by the borrower.
  • Asset Verification: Verify the assets claimed by the borrower.
  • Credit Verification: Review the borrower’s credit report for any inconsistencies or undisclosed debts.
  • Social Security Number Verification: Verify provided social security number to determine if it is associated with other individuals.

 

Conclusion

Implementing these strategies can significantly reduce the risk of identity theft in mortgage transactions. At Frasco® Mortgage Risk Mitigation, we are committed to providing thorough and effective investigative services to protect our clients from fraud. By leveraging our expertise in forensic reviews, due diligence audits, loss mitigation, and verification services, mortgage professionals can ensure the integrity and security of their transactions.

 

Contact Us Today

Frasco® Mortgage Risk Mitigation delivers ethical and efficient solutions tailored to your needs. Have questions or want to discuss your investigative needs further? Schedule a call with one of our experts today to find the answers you’re looking for.

Disclaimer: This blog post is for informational purposes only and should not be considered legal advice. Please consult your general counsel for specific legal guidance. Frasco investigators are licensed, and our operations comply with US industry, federal, state, and local laws.