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Back to Basics – Fraud Check and You

March is Fraud Prevention Month in Canada, which makes it the perfect time to review fraud protection solutions for lenders.

One of Purview’s solutions for lenders is Fraud Check – up to 18 customizable real estate fraud checks that save you time by quickly checking for potential suspicious activity and flagging applications that warrant further investigation.

This is a great way to exercise due diligence and spot red flags sooner in the process.

Get back to basics with this Fraud Check refresher to make sure you are using its full capabilities in your lending practice.

What does Fraud Check reveal?

Among other information, Fraud Check verifies:

  • Active mortgages.
  • Recent sales.
  • Prior foreclosures.
  • Whether the vendor is a corporation.
  • Active cautions.
  • Active liens.
  • Power of sales.
  • Unusual discharges.
  • Frequency of power of sales in the area.
  • Whether there are any concurrent mortgages.
  • Active judgments.
  • And more.

If a flag is found, you can proceed with further investigation.

This offers significant enhancements and improvements to mitigate risk and avoid mortgage fraud.

Why is Fraud Check necessary?

Sometimes mortgage fraud is deliberate, such as title theft, straw borrowers, and lying about home renovations to increase the value.

However, more often fraud can be the result of an omission or “little white lie.” Your client may not even realize they are committing fraud. This could include:

  • Overstating the number of hours they work per week.
  • Forgetting about an existing debt (or being unaware of it).
  • Misrepresenting the purpose of the property (such as saying that it is a primary residence when the client is really planning to rent it out).
  • Inflating the value of the property.

Fraud check can help ensure that not only are your clients being honest with you, but also that they are not leaving any details out unintentionally either.

How to Access Fraud Check

Fraud check is part of Purview’s suite of solutions for mortgage lenders and insurers. Customize each of the 14 valuation parameters and 18 fraud check parameters to suit your company’s lending policies.

With this customization, you can use Purview to address your specific requirements and zero in on the information that you need to know quickly.

Purview also provides brokers, lenders, and insurers with other solutions for mitigating risk, including equity estimates, comparable sales, estimated value, lien checks, and much more.

Access Purview’s solutions today by calling 1-855-787-8439 or visiting www.purview.ca.

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