Genworth Canada reported this week that cases of mortgage fraud are down in Canada, thanks largely in part to advancements in the industry: tougher regulations, improved technology and training for mortgage professionals. This is good news, considering that just a year ago, Equifax Canada released a study showing that 9% of Canadians admitted to lying on their loan applications (and that’s just who admitted it).
Something as seemingly minor as inflating your income on a mortgage application is in fact fraud.
“Whether you’re a lender or a consumer, data protection and the integrity of the data should be priorities at all times. For the consumer, it’s not just a matter of protecting your information, it’s critical to know what’s on your credit file – especially when looking to buy a new home.” [Equifax Canada]
Genworth also revealed that they reject nearly 7 to 10% of all loans and investigate claims of mortgage fraud on a case-by-case basis. This announcement comes after a rather large case mortgage fraud hit the media, so it’s important to know what qualifies as fraud and to ensure you avoid it at all costs.
“The industry takes misrepresentation very seriously and as a group we’ve all taken some very strong actions over the last few years to reduce instances of misrepresentation and fraud in the industry,” Stuart Levings, chief executive officer of Genworth MI Canada Inc., said in a Wednesday conference call with analysts. [Globe and Mail]
Do you have questions about mortgage applications or mortgage fraud? Please feel free to contact me via my website, or you can reach me on Twitter.
