Mortgage Lenders Fraud Prevention
                     Prevention Of Mortgage Fraud Saves Life Savings
Mortgage fraud has various forms. The most common form of mortgage fraud is lying about
income that forms about 25% of all mortgage fraud. The Attempts to hide a bad credit history is
also one of the most common. Last but not the least, lying about an employment situation forms
20% of mortgage fraud.
There is one more type of mortgage fraud that takes place when there is failure to tell the lender
about  how the  property  is  going  to  be  used. For  example,  the  lender  might  be  told  by  the
borrower that the is buying the property to live in when it is really being bought to let. This is
usually done to avoid the higher mortgage rates.
Most of the times mortgage fraud is committed by individuals. Some organized crime groups are
getting involved in it too. Hence it is important to seek mortgage and title fraud protection. 
Funding Shield provides solutions that deliver coverage at the time of transaction against wire &
title  fraud,  settlement  risk,  closing  agent  Funding Shield  is  a  specialist  in  safeguarding  you
against  financial  wrongdoings  in  the  mortgage  industry.  It  boasts  of  fraud  experts  and
gives solutions that work together to help lenders identify and crush the threat of mortgage fraud.
Understanding Mortgage Fraud And Its Types
It is a well-documented fact that mortgage fraud is committed by the borrowers, unscrupulous
mortgage brokers and lenders too.
The acts of mortgage fraud have risen significantly in recent times. At times the act of mortgage
fraud can be relatively innocent.  The borrower may misstate certain figures or fail  to report
significant information that is relevant to their application.
Sometimes  the deceit  is  intentional,  but their  primary motive is  not financial  advantage,  but
merely to be able to buy a home that they want when they cannot legitimately qualify for the
necessary mortgage loan.
 
1. Income Fraud
Income fraud is when a potential borrower states an income that is higher than his actual income.
Sometimes is also involves their giving false information regarding their designation or create a
false job title. For example, a borrower may falsely state that he is a higher level employee.
This can also lead borrowers to omit identity theft to obtain a mortgage loan by using another
person’s financial  information.  Such homeowners realize they are the victim of identity theft
when they go to sell their home.
 
2. Appraisal Fraud
Appraisal  fraud takes  place  happens when the appraisal  of  a  property is  intentionally  either
overstated or understated. In this a property is appraised for more than its actual value or sale
price. This enables the borrower to obtain a higher mortgage loan. Sometimes a lower appraiser
is procured to understate the value of a property to make the seller to agree to sell the property
for a lower price.
Funding Shield is a name to reckon with the realm of mortgage industry that works tirelessly
towards Mortgage Lenders Fraud Prevention to protect you from a potential financial loss.