With so much changing in the market, it’s no surprise that the risk of mortgage fraud has increased this year. HousingWire recently spoke to Donna Gibson, COO and president of QC Ally, about fraud prevention and loan quality outlook for the rest of 2022. HousingWire: In this time of market change and as we head towards the last quarter of 2022, what are the hot topics in risk, fraud prevention and loan quality? Donna Gibson: QC Ally just returned from the Mortgage Bankers Association Risk Management, QA, Fraud Prevention Forum. Industry experts from across the country met to discuss just this topic, and themes aligned with what we’re seeing at our organization. On September 12, HousingWire reported on a CoreLogic mortgage fraud report, which said risk of income (27.3% increase) and property (22.6% increase) fraud rose in the second quarter of 2022. We weren’t surprised. These numbers correlate with what we’re monitoring in mortgage fraud. We also are monitoring the reduction in the pool of potential mortgage borrowers and products available, such as the increase in use of adjustable rate mortgage (ARMs) and others. The housing industry is much more regulated in a post housing crisis era, and ARMs may not be utilized as they were pre-2008. However, every mortgage loan needs to fund, and the pool reduction could lead to rejected loans that would’ve been approved and funded previously. There’s an opportunity here for risk and QC teams to encourage trust in the lending space through strong processes and
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