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
Court records show more than 90 loans originated through one broker using six borrower LLCs, one title agency, and two principal appraisers
Expanded property monitoring gives eligible homeowners early warnings about suspicious deeds, liens, and property listings
Cotality says fraud indicators appeared in one out of every 129 mortgage applications, though investor and multifamily loans continued to carry elevated risk
New tool combines fraud scoring, property research and automated condition management within the LOS workflow
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
Rising wire fraud risks — now amplified by AI-driven deep fakes — are exposing vulnerabilities in mortgage closings and forcing lenders to tighten cybersecurity, employee training, and transaction controls
ProPublica reports that Donald Trump claimed two Florida homes as his primary residence on separate mortgages despite never living in them, a practice experts say meets the standard for mortgage fraud set by his own administration
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