Attendees at the MBA’s Fraud Issues Conference seemed very interested in understanding why mortgage fraud was on the rise and what, specifically, was causing it. Experts agreed that some of the fraud being perpetrated today was designed to ensure continued business income streams, which is expected to continue. Realtors, brokers, builders and others trying to shore up falling business volume are turning to fraudulent transactions to maintain a standard of living that is no longer possible in many cases. Other reasons include the fact that the shift from subprime, no-doc loans to full-doc loans has left lenders unprepared to deal with new work flows. Underwriters have not been adequately trained to verify the information now being presented on the application. Desperate borrowers and overloaded REO departments are two more causes of increased fraud. More to follow…