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Mortgage Broker News | 21 Feb 2017, 08:15 AM Agree 0
In a provocative thesis, a Dominion Lending Centres agent theorized that roughly 20 per cent of Canadians commit fraud to qualify for mortgages
  • Anne | 21 Feb 2017, 09:22 AM Agree 0
    I'm extremely surprised this article made it in to mortgagebrokernews.....
  • Rick | 21 Feb 2017, 10:20 AM Agree 0
    On the bright side this is another reason to reach out to you prospects and data bases! 1. Set the record straight on tenure (minimum can be 3 months, talk to your lender) 2. Potentially dishonest are the key words there, brokers pull one bureau and shop it which reduces input errors and oversights on applications. Different lenders use different incomes which could also be a factor and we know what lender will accept what income instead of borrowers having to shop around themselves.

    Lastly, what was the original percentage of potentially dishonest applications? Saying it's up by 52 percent doesn't show the whole picture.
  • Julie Stamp | 21 Feb 2017, 10:39 AM Agree 0
    I am not surprised it made it into Mortgage Broker News what I am surprised at is the random figure of 20% that was used. Does Mr. Nazareth have facts and figures to support this claim? His article seems to be implying that clients can state what income they would like to have to purchase their homes, and while this would clearly be a temptation if this is what lenders accepted, that is not the case. Lenders require numerous checks and balances to confirm income. Standard requirements are current job letter that is verbally confirmed by the lender with the employer, current pay stub and last years Notice of Assessment. These are minimum document requirements for confirming income. In point of fact we are sometimes buried in the amount of confirming paperwork that is required to be provided to our lenders, say vs. the bank branches who somehow are still able to slide marginal deals through. Clients cannot just state what they would wish to have as income, contrary to what his article seems to be implying. All industry changes should be based on provable actual facts and data, and I would suggest if Mr. Nazareth is experiencing a 20% fraud rate with his clients then perhaps he needs to source a better pool of clientele, as I completely disagree with his statement and find no facts or figures to support his claim. Our industry and business is being squeezed enough both by the big banks and the government who fails to understand the business and makes multiple arbitrary changes to the regulations without waiting for them to effect the market and without enough consultation with that market to understand the full ramifications of those changes. We do not need our own team inciting inflammatory and inaccurate statements.
  • Julie Stamp | 21 Feb 2017, 10:42 AM Agree 0
    In addition to my previous reply, Mr. Nazareth is licensed as an agent not as a Broker, the article should be updated to reflect this error.
  • Bev Gay | 21 Feb 2017, 11:03 AM Agree 0
    I am not surprised about the amount of mortgage fraud as a whole but I think it is happening in the branch world.. ...anything I cant get done on the broker side they just go to the branch show a payslip and they get approved...no notice of assessments, t-1Generals we get paper from every source a client has so why would DLC be different?. I wonder why he is even commenting. Its pretty pretty hard to get a mortgage approved on the broker side so I would say 20% is extremely high. and the banks dont even know what goes on in their branches.
  • Scott Nazareth | 21 Feb 2017, 12:41 PM Agree 0
    Hello there -

    The stats that I used were the Equifax Report that was stated in the article as well as a citation from Canada Guaranty - stating that 1 in 10 application had an element of fabrication. I am 100% against fraud - I was trying to open a discussion on this issue - keeping in mind that brokers have less than 50% market share and many options. It was not my intention to slander or deflate the reputation of the broker community. I wanted to chime in - as aside from a few rotten apples we have nothing to hide. The media continuously takes charge of the discussion on fraud and It was my intention to openly condemn it. In the original article my advice to consumers was to speak with a mortgage broker. I apologize for anyone to whom I have offended - as it was not my intention to disrespect the thousands of brokers who have dedicated their lives to making the industry strong and a great community to be part of. In part I have tried to do my own research and stats on my Loanerr.Ca blog - and felt that speaking to another blog owner would help get the message out there - that we have nothing to hide. I have spoken with DLC members and have expressed my opinions - and they have been extremely understanding. I never meant for this to take such a negative spin on all of us.
  • truthseeker22 | 21 Feb 2017, 12:47 PM Agree 0
    This is a ridiculous article with a mortgage rep (looking for fame, if thats what you call this hahaha) stating surmised information that is actually quite irrelevant. This is typical "headline" stuff using the word fraud when a person says they have worked with an employer 5 years instead of 4, if this is fraud then yes probably 80% of applications are fraud either intentionally or not. Write a story when you see swaths of people generating fake paystubs, altered T slips, and the such not this.
  • LondonMortgageGuy.ca | 21 Feb 2017, 02:32 PM Agree 0
    FYI everyone,
    This article is a retread from another site that misrepresented statements made by Scott Nazareth and is not an accurate reflection of Scott Nazareth.

    This article is a 100% misrepresentation of his comments and the CMP author of the article above did not contact Scott Nazareth.
    This article and the poor professionalism by the original author has been dealt with and explained by Scott Nazareth to his peers on the "I Love Mortgage Brokering" Facebook page, so please think twice before any negative comments are made.

    I find it quite disappointing that MortgageBrokerNews.ca ran this piece without any fact checking or research.
    • GULLY BULL | 22 Feb 2017, 10:56 AM Agree 0
      ONTARIO IS RIPE WITH CRIME. GOOD THING ALBERTA DONT DO BUSINESS LIKE THIS. IN FACT, most fraud is committd by OMMISSION OF INFORMATION BECAUSE THE MORTGAGE AGENT DIDNT DO THEIR DUE DILLIGENCE. BLAME average joe/judy citizen for the money trouble ? BLAME TRUDOH. OUR MONEY IS FIAT CURRENCY .... interest rates ARE ILLEGAL under law. SO WHY DO PEOPLE NOT SAY ANYTHING? BECAUSE ::::: FOREIGN MONEY IS BUYING CANADA UP.. BANKS DONT CARE>.. its the little person that loses. SEE HOW PROPERTY IS DROPPING SINCE 2008... OPEN YOUR EYES>... SCOTT IS ACTUALLY WRONG.. THERE IS MORE LIKE 50 PERCENT FRAUD... THINK ABOUT IT.... 55 percent of CANADIANS own their own... SO WHAT>...... how about 25 to 35 to 45 ? ??????? MOST HOMES ARE OWNED BY OVER 50..... SO WHO IS WINNING THIS WAR ???? FOREIGN INVESTMENT.... NOT CANADIANS... IM TIRED OF THIS ARGUMENT... OUR GOVT IS CORRUPT. period.
  • John | 21 Feb 2017, 02:40 PM Agree 0
    I am sure there is fraud in the mortgage business but 20% seems way to high. Lenders know what to look for. I've had clients that did not qualify for a high ratio mortgage but manage to get a mortgage though a bank.
  • Tony | 22 Feb 2017, 09:04 AM Agree 0
    Theres more fraud at bank branches than the news reports...
  • Peter | 22 Feb 2017, 02:10 PM Agree 0
    In the age of Trump any idiot can assert any array of "alternate facts" no matter how unsubstantiated. Not surprised its in this publication - it wouldnt get into any other credible rag.
    • Editor | 28 Feb 2017, 09:57 AM Agree 0
      Except it did. And the broker cited actual studies by reputable institutions. Just because you don't agree with arguments or study-based figures doesn't make them "alternative" or "fake news" or any other such buzzword made popular by the current president.

      Happy do discuss how you think MBN can provide improved coverage of the industry.
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