Did you know that law enforcement officials and lenders believe that 10% - 15% of all mortgage applications contain false information?
As the principal broker of First Foundation in Saskatchewan, it is my responsibility to make sure that all our Saskatchewan mortgage files are compliant with provincial regulations. I realize this is both bold and exciting.
This year, in order to renew my license, I was required to take a re-licensing course and exam through the Canadian Association of Accredited Mortgage Professionals (CAAMP). I was taken back by the amount of information that was centered around mortgage fraud. While I was studying for the exams, I kept thinking, this material is great for me to know as a mortgage professional in order to protect my lending partners from fraudulent client applications BUT what about those individuals (my clients potentially) who may unknowingly become a victim of mortgage fraud? What information is available to protect them?
You see, sharing information about mortgage fraud and how certain schemes work, can tip off the fraudsters as to what the regulators are watching out for, in essence making them better perpetrators. So for any agency there is a fine line between sharing information with the aim of protecting consumers without sharing information that directly enables the fraudsters. In my attempt to find some consumer facing information, I found this document published by the Government of Alberta.
This document does a great job of explaining the different types of mortgage fraud and provides a decent list of red flags. Thought it would be great to share here on our blog. Enjoy! (well as much as you can enjoy a document about mortgage fraud).