MORTGAGE FRAUD IN THE MEDIA...
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Mortgage Fraud in the Media…
The topic of mortgage fraud has come to the forefront in the media as of late, and we want to ensure that you are well aware your association is closely monitoring this situation.
We participated in the Home Capital Group call this morning, and commend the company on its positive portrayal of mortgage brokers across Canada. While 45 mortgage brokers – 18 individuals and two brokerages – were cut off by Home Capital for suspected falsification of employment documents, the lender stressed it is currently dealing with close to 4,000 mortgage brokers.
Home Capital is taking a number of steps to show its continued commitment to the channel and intends to deepen relationships with brokers, including spearheading a new broker loyalty program later this year as well as introducing a new broker portal.
What CAAMP is doing
We want to share the message CAAMP is taking to the media. At the same time we would like to provide the following speaking points to our members to equip you with easy access to information when you are asked questions about mortgage fraud from your clients, referral partners and the media:
- Fraud is unacceptable anywhere, including within the mortgage industry, credit cards, bank accounts, etc.
- There are approximately 18,000 registered mortgage brokers across Canada – representing approximately 36% share of market or about $70 billion in annual mortgage funding.
- The latest data, based on 2012 figures, shows mortgage fraud totalled about $600 million. Of the $200 billion total outstanding mortgage volume during that same time period, mortgage fraud represented 0.3% of mortgage volume.
- Mortgage arrears in Canada remain extremely low at around 0.28%.
- The Canadian mortgage industry has among the strongest systems in place in the world to ensure fraud does not occur, including comprehensive lender and insurer fraud detection systems. Brokers play a vital role in terms of vetting all supporting documentation and interviewing all clients, as they are the direct line to the borrower.
- Broker licensing and re-licensing are mandatory for most provinces, and fraud detection makes up a significant part of the curriculum.
- CAAMP continues to educate the industry through events such as fraud summits and education days, as well as via standards of practice and professional development courses on Mortgage Campus in order to help ensure brokers are up-to-date on the latest scams and prevention measures.
There is no doubt that any amount of fraud is too much. CAAMP is dedicated to sustaining a strong and respected mortgage industry and ensuring that consumers continue to understand the benefits of dealing with mortgage brokers for their financing needs.
