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Brokers need to know their clients, says insurer

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Mortgage Broker News | 09 Mar 2012, 08:00 AM Agree 0
Mortgage brokers can help fight fraud by checking their client’s backgrounds, says a title insurance provider, which investigates $120,000 of suspected mortgage and title fraud every day.
  • Vas Anton | 10 Mar 2012, 05:45 AM Agree 0
    The way the article is written seems to suggest that banks are being victims of fraud solely through the broker channel... From the title ("Brokers need to know their clients, says insurer") and throughout the articles - "Mortgage brokers can help fight fraud", "simple steps can help brokers ensure their clients are genuine", "He recommends brokers get to know their clients" - the author makes it look like fraud is only being perpetrated upon the unsuspecting banks *ONLY* through the broker channel...

    I would have preferred if the authour would have said "the mortgage specialist needs to..."... If I remember correctly, there were a couple of fraud cases, settled just recently, that were perpetrated through banks' branch channels or through their internal mortgage sales force...

    This could have been a good article, if only the author would have used the more general term...

    Vas Anton
    Excel Mortgage Canada
  • Ron Butler | 10 Mar 2012, 07:29 AM Agree 0
    Well said Vas, while I agree that brokers MUST apply due diligence to knowing who their clients are; after 16 years I have seen 10 times the amount of fraud for profit from bad lawyers and bad realtors than from mortgage brokers.
  • Stan Olech | 13 Mar 2012, 03:58 AM Agree 0
    Amen to it Ron & Vas
  • Michelle W | 15 Mar 2012, 02:53 AM Agree 0
    Ron and Vas (to a certain extent) - You are both correct.

    However, I'd like to point out that this article is specifically focusing on Brokers because the "CAAMP-Maritz report indicated lenders and banks considered fraud one of their leading concerns about dealing with brokers".

    This is specifically why the author isn't branching off to all the other lawyers, specialists, etc. and instead is focusing specifically on Brokers. Make sense?
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