Tagged: Fraud

New DU updates put occupancy questions in front of lenders before closing, while Freddie reports lower defect rates on loans using automated tools

AI and increasingly sophisticated wire fraud are raising the stakes at the closing table, forcing lenders to rethink how they verify identities, counterparties, and payment instructions

Informed has named mortgage-tech veteran Daniel Sogorka CEO as the AI fraud detection platform looks to expand beyond auto lending

Integration gives Encompass lenders access to settlement-agent risk assessments and verified wire instructions through their existing SettlementOne workflow

New tool combines fraud scoring, property research and automated condition management within the LOS workflow

New executive hires follow Series C funding as company looks to scale fraud protection across real estate transactions

Strong demand from buyers and sellers could turn fraud prevention into a profit center for real estate transaction companies

Mortgage fraud risk edged higher in late 2025, with investment and multifamily loans — alongside growing DSCR and refinance activity — driving elevated fraud indicators, according to Cotality

State financial regulators have secured sanctions against a mortgage loan originator for violating the SAFE Act by misrepresenting completion of required education

Because settlement agents often lack mandated insurance, and coverage gaps are common, lenders must actively verify and monitor agent insurance and bonds to protect themselves from fraud-related losses