Mortgage Bankers Association Releases 2006 MARI Mortgage Fraud Report
WASHINGTON, DC (May 16, 2007) - The Mortgage Bankers Association (MBA) today announced that the Mortgage Asset Research Institute, LLC (MARI®), a ChoicePoint® (NYSE: CPS) Service, has delivered its Ninth Periodic Mortgage Fraud Case Report to MBA. The report examines the current state of residential mortgage fraud and misrepresentation in the United States based on participating lenders' reports to MARI.
MBA has been a leader in raising the national profile of mortgage fraud against lenders and bringing together all those who are affected by fraud to help find solutions. MBA is leading an effort to obtain an additional $6.25 million annually for the FBI to hire additional investigators and prosecutors solely responsible for dealing with cases of fraud against lenders. In addition, in March, MBA signed an agreement with the FBI to promote the use of the FBI's Mortgage Fraud Warning Notice.
"Fraud against mortgage lenders is a growing concern to all who have a stake in our industry," said John M. Robbins, CMB, Chairman of the MBA. "While we continue to try to get our arms around the full scope of the problem, the MARI report significantly helps the industry better understand where we need to focus efforts in defending our companies and communities against mortgage fraud as it increases in frequency across the nation."
Some highlights in the report include the following:
- The number of reports in MARI's Mortgage Data Industry Exchange (MIDEX®) database pertaining to 2006 originations is approximately 30 percent higher than the number of reports in the 2005 book of business at the same time last year. Additionally, incidents of mortgage fraud are now more evenly distributed across nearly all states whereas, in prior years, reports tended to be concentrated in relatively few states.
- There are changes in the rankings of the states in terms of their mortgage fraud experience, with Florida taking over the top spot and Georgia showing the greatest improvement from prior years' rankings.
- The most common types of fraud found to date in 2006 originations are in the areas of employment history and claimed income.
- California's reported fraud had been quite low in the past few years, and some industry experts have suggested that its problems were masked by high real estate appreciation. The recent slowdown in its housing market may explain California's return to high ranking in this year's report.
"Collaboration is the key for the mortgage industry as it continues its efforts to fight mortgage fraud against lenders," said Merle D. Sharick, Vice President and National Manager of Business Development for MARI. "MARI is pleased to be part of this effort by disseminating current data to MBA members through our annual fraud report."
MARI provides MBA members the annual reports as well as discounted fees to participate in MARI's database, the Mortgage Industry Data Exchange (MIDEX). The MIDEX system allows mortgage lenders, insurers and agencies to exchange information about companies and professionals that have been involved in loan transactions containing alleged fraud or material misrepresentations.
MARI also offers the Mortgage Fraud Alert System (MFAS). This system issues periodic alerts to subscribers about suspicious activities related to mortgage lending.
A full copy of the report is available on both MBA's website, www.mortgagebankers.org and on MARI's website, http://www.mari-inc.com/reports.html.
The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 500,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 3,000 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site: www.mortgagebankers.org.
About Mortgage Asset Research Institute
The Mortgage Asset Research Institute, LLC (MARI) is a premier provider of mortgage fraud prevention solutions and information services to the mortgage and financial services industries. MARI's 600+ subscribers represent the entities involved in over 80% of the wholesale mortgages originated in the United States. MARI's Mortgage Industry Data Exchange (MIDEX) service assists lenders in identifying mortgage and real estate professionals that have been associated with fraudulent activity or serious misrepresentation. For more information about MARI's services to combat mortgage fraud, go to www.mari-inc.com.
About ChoicePoint
ChoicePoint (NYSE: CPS) provides businesses, government agencies and non-profit organizations with technology, software, information and marketing services to help manage economic and physical risks as well as identify business opportunities. Each year, we help more than 100 million people who are seeking to obtain jobs, fairly priced home and auto insurance, and who wish to rent apartments. Our authentication and anti-fraud tools improve efficiency and instill confidence in the decision-making process for our customers and consumers. Consumers have free access to the reports we create at www.choicetrust.com. Learn what we do to protect consumer privacy by visiting www.PrivacyatChoicePoint.com and, for more information on our company, go to www.choicepoint.com.
MARI, MIDEX and ChoicePoint are registered trademarks of ChoicePoint Asset Company.
