Posted on: 20th Mar, 2006 02:29 am
Mortgage fraud seems to be a billion dollar business and a growing concern for the Canada mortgage industry. As per the estimate of the Quebec Association of Real Estate Agents and Brokers, the nation comes across fraudulent activities worth $1.5 Billion every year. The industry at the state of Alberta itself has gone through fraudulent mortgage loans worth $275 million in the fiscal year 2001-2002.
Most of the fraud victims are mortgage lenders who are often not aware that it's a fraud case. Almost 10-15% of all mortgage applications have false information that homebuyers provide for getting loan approval. Lenders are also involved in such crimes as the zeal to earn profit forces them to deprive borrowers of their interest in the property. These kinds of frauds involve identity theft which is a growing concern for the industry.
However, the state of Alberta has set up the Advisory Committee on Mortgage Fraud last year in order to check such illegal practices in the industry. The Committee has recommended enforcing the Land Titles Act and the Real Estate Act in this regard.
The Real Estate Act allows the Real Estate Council of Alberta to investigate fraud cases affecting the mortgage industry. The Council has taken supplementary measures to curb fraudulent practices – making it mandatory for all mortgage brokers to go through a course in fraud awareness prior to renewing their licenses. The Council also helps the public conduct a license search to make sure that they deal with licensed mortgage professionals.
Experts believe that agreement among all parties over getting the best practices in the industry will help deal with fraud issues in a better way. They feel every lending institution needs to upgrade its standards while examining details of loan applicants. But others consider criminal prosecution as the best way to slow down rising fraud cases in the industry.
Most of the fraud victims are mortgage lenders who are often not aware that it's a fraud case. Almost 10-15% of all mortgage applications have false information that homebuyers provide for getting loan approval. Lenders are also involved in such crimes as the zeal to earn profit forces them to deprive borrowers of their interest in the property. These kinds of frauds involve identity theft which is a growing concern for the industry.
However, the state of Alberta has set up the Advisory Committee on Mortgage Fraud last year in order to check such illegal practices in the industry. The Committee has recommended enforcing the Land Titles Act and the Real Estate Act in this regard.
The Real Estate Act allows the Real Estate Council of Alberta to investigate fraud cases affecting the mortgage industry. The Council has taken supplementary measures to curb fraudulent practices – making it mandatory for all mortgage brokers to go through a course in fraud awareness prior to renewing their licenses. The Council also helps the public conduct a license search to make sure that they deal with licensed mortgage professionals.
Experts believe that agreement among all parties over getting the best practices in the industry will help deal with fraud issues in a better way. They feel every lending institution needs to upgrade its standards while examining details of loan applicants. But others consider criminal prosecution as the best way to slow down rising fraud cases in the industry.
I'm self employed, no debt, bad credit.[/b]
Hi joe,
Don't think you need a broker b'cause you don't have bad credit or debts as such.
Don't think you need a broker b'cause you don't have bad credit or debts as such.
Hi,
You can consult a broker and take their help in finding out the right lender for the loan type you prefer. It does not matter if you are self-employed, you can still avail the services of a broker. Brokers have tie-ups with a number of lenders in the industry and as such they can provide you with a variety of loan programs to choose from.
Thanks.
You can consult a broker and take their help in finding out the right lender for the loan type you prefer. It does not matter if you are self-employed, you can still avail the services of a broker. Brokers have tie-ups with a number of lenders in the industry and as such they can provide you with a variety of loan programs to choose from.
Thanks.
Hi Joe,
As you are self-employed, you may have to submit a lot of additional documents which an employee does not have to provide along with the loan application.
The broker can assist you in informing you about the documents required for the application and help you in the entire process. But they do charge fees and you need to be cautious that you aren't spending too much for his services.
As you are self-employed, you may have to submit a lot of additional documents which an employee does not have to provide along with the loan application.
The broker can assist you in informing you about the documents required for the application and help you in the entire process. But they do charge fees and you need to be cautious that you aren't spending too much for his services.