The loan modification business is proving to be a hotbed for mortgage fraud. Speakers in a session entitled Maximizing Fraud Detection in Times of Economic Unrest are finding appraisal fraud in short sales. Values are being deflated and many of these transactions are occurring between parties that are not at arm’s length from one another. Lenders must have a method for determining the relationships between the parties involved in the transaction. In most cases, only technology can provide that objective overview as automated fraud screening tools can search for matches among many past and pending transactions. Lenders must always watch for occupancy fraud. This a red flag that is appearing often in loan modifications. More to follow…