Broker news TV

Broker news TV brings you closer to the industry's most influential leaders and thinkers. Click on the videos below to watch the interviews:

Showing 28 - 36 of 92

The Big Story: Mortgage Fraud

Most brokers think it could never happen to them. But mortgage fraud is still a problem. Not anymore with brokers than with banks, but a recent report put the cost of mortgage fraud at $400 million, a number everyone should be concerned with. For brokers, preventing fraud comes down to “knowing your client”.

Education is also key in knowing what to look for when putting a deal together. This week we spoke to Ray Leclair, VP, public affairs for LAWPRO (TitlePlus), Lee Welbanks of The Mortgage Centre and Bill Eves, Wayne Sudsbury and Grant Brown of Homeguard Funding Ltd. (VERICO). Find out on today’s The Big Story, on TV, your home for industry news, opinion and analysis.


Video transcript below:

John Tenpenny, Mortgage Brokers News TV
John Tenpenny:
 Hi, I’m John Tenpenny, Editor of CMP Magazine and welcome to the Big Story on Mortgage Broker News TV.

Most brokers think it can never happen to them.  But mortgage fraud is still a problem.  Not any more so for brokers and for banks, but a recent report put the cost of mortgage fraud at $400 million, a number everyone should be concerned about.  For brokers preventing fraud comes down to knowing your client.  Education is also a key and knowing what to look for when putting the deal together.
Bill Eves, Vice President, Homeguard Funding Ld. (VERICO)
Bill Eves:  I believe that it all boils down to know your client.  If you know your client, I personally have never experienced a mortgage fraud, although I have seen some suspicious looking items in my practice.  But never have an experience on end result basis.  I think it boils to if we know our client, you are not totally at risk for being part of a fraudulent deal.  The real estate people have it, why don’t we know your client well.  
Lee Wellbanks, Broker, The Mortgage Centre
Lee Wellbanks:  I think we really need to do a little more due diligence on our part.  We need to report fraud when we see it, there is a lot of tools available to us, whether there is programs, there is lenders, there is other partners that we can report these things to.  We need to know our clients better, we need to meet our clients, these are all things that I think will help reduce a lot of the fraud that happens in this industry and perhaps isn’t done enough at this stage of the game.
Wayne Sudsbury, President, Homeguard Funding Ld. (VERICO)
Wayne Sudsbury:  Statistics show us that it’s a very small percentage of the total mortgages outstanding in Canada today, that are actual fraudulent transactions.  Notwithstanding that, I believe that mortgage brokers should take mandatory courses every 2 or 3 years to make sure that they are aware of the red flags that can cause or lead to a fraudulent transaction.
Ray Leclair, VP, Public Affairs, LAWPRO
Ray Leclair:  What we are telling anybody about fraud is basically to be on alert for signs of fraud.  If things that will give you an indication that there is something funny going on, that could be somewhat that the client is not as interested in the properties they should be, they don’t have the interest in the expenses, they don’t necessarily have the right documentation, they don’t have surveys, they don’t have bills, they don’t have those types of documents that typically the clients would have and who are interested in the property.  The ID may not be exact, they may not allow you to deal with the previous lawyer or the previous banker or go to visit the property.  There is a number of things and you know the documentation just doesn’t look right, there is a third party maybe that seems to be governing the transaction.  Those types of things on themselves are not suspicious, but basically on as a whole, you start getting a flavour and that’s what we are trying to get them to look at, about when to heighten their sensitivity.
John Tenpenny:  If brokers are suspicious that a fraud is occurring, knowing what to do is the next step.
Ray Leclair:  So anybody who thinks that they may have, may be dealing with a fraud should be asking questions.  That’s probably the number one thing.  The more questions you ask the more problematic you are as a target and therefore they move on and so that’s the best thing to do.  But the other thing is meet with the clients, that does heighten the sensitivity of that time.  Review the documentation, they may not have a proper ID, proper documents, be careful though, there are some very good fraudulent documents and fakes out there that are available on the internet from someone. So those are all things to look at.  Of course you want to try to deal with your referrals, the fact that somebody referred him to you may be part of the set up.  And so you want to contact your friends who have sent you these referrals to make sure that they are legitimate clients, but again the most important thing is, if you think there is a fraud ask more questions.
John Tenpenny:  A mortgage fraud may not be on the upswing, it’s form certainly has become more sophisticated.  And while prevention is the key, so is ensuring that the penalties for those who commit fraud are enough of a deterrent.
Ray Leclair:  So the most troubling trend is probably the fact that they are becoming more sophisticated at their own game.  They are learning from their mistakes.  So used to identified easily a fraud by the bad email, the bad writing.  Now they must have got spell checkers and they are getting much better at it.  The documentation they are presenting is much better, much more advanced, much more sophisticated.  They are presenting full packages and so it’s looking more very realistic and very much what you would expect to see.  And so it becomes little more difficult to identify it.  So you have to be little more alert, so going back to the original messages, be alert as to what you are doing.  Look at it, scrutinise it and watch for those tell tale signs so that you can better identify the situation.
Grant Brown, Broker, Homeguard Funding Ltd. (VERICO)
Grant Brown:  The reality with fraud is that we are never going to entirely get rid of it.  What we need to do as brokers, is we need to improve our education and our due diligence, as well as an entire industry including lenders lobby the government and our respective associations to really increase the fines for mortgage fraud.
  • The Big Story: The most effective social media tool The Big Story: The most effective social media tool (views 10301)

    Brokers are as gung ho about social media and its power to win leads as other salespeople. But which one -- Twitter, Facebook, et al -- provides the biggest bang for a broker's buck? MBN finds out.

  • The Big Story: Lenders and grow-ops The Big Story: Lenders and grow-ops (views 11312)

    Brokers are generally supportive of registering former grow-op properties, but will monolines and banks ever lend on those rehabilitated homes?

  • The Big Story: The Mortgage Summit 2013 The Big Story: The Mortgage Summit 2013 (views 9057)

    Here's the highlights of the 2nd-annual Mortgage Summit, powered by CMP and bringing together more than 500 industry players for two days of professional development and networking.

  • The Big Story: The CMAs take the stage The Big Story: The CMAs take the stage (views 8528)

    Toronto was host to the 7th annual CMAs, theatre-styled gala honouring 21 industry players from brokers to underwriters. Take in the sights and sounds of this extravaganza.

  • The Big Story: Fighting doom and gloom The Big Story: Fighting doom and gloom (views 9105)

    The real estate forecasts of some big players have receive even bigger media attention. That's bad news for brokers sitting on preapprovals. But there is a way to encourage ready buyers into the market.

  • The Big Story: Rate Madness The Big Story: Rate Madness (views 13349)

    When one of the Big Five announced it would match any rate a competitor offered, brokers sat up and took notice, and then they got busy...

  • How to be a disruptive force How to be a disruptive force (views 9017)

    Industry trainer and broker Greg Williamson (Mortgage Professionals Academy) wants brokers to be a distruptive force for change, turning the tables on the banks and the rate wars. He`ll lay out his strategy at the upcoming Mortgage Summit (May 9 - 10) in Toronto during a luncheon workshop open to all registered attendees. For more information on the workshop, visit

  • Mapping out your marketing plan Mapping out your marketing plan (views 10185)

    Mortgage professional Michael Mullis -- the Mortgage Teacher -- is helping brokers master the art of multimedia marketing, with a session at the upcoming Mortgage Summit revealing all the tricks of that increasingly important trade.

  • Benefit from BMO's 2.99 Benefit from BMO's 2.99 (views 10403)

    Brokers weren't impressed by BMO's 2.99 per cent on its 5-year no-friller, says Centum's Paul Therien, but the offer has highlighted the need to provide clients both rate and expertise.