What to expect at HousingWire’s Spring Summit

The focus of the Summit is The Year-Round Purchase Market. Record low rates led to a banner year for mortgage lenders in 2020, and this year is expected to be just as incredible.

Conquering the Mortgage Lender’s Dilemmas

This webinar provides a roadmap for creating a sophisticated, digital-first cost improvement strategy to maximize profits by reducing high processing environments.

HW's 2021 Spring Summit

We’ve gathered four of the top housing economists to speak at our virtual summit, a new event designed for HW+ members that’s focused on The Year-Round Purchase Market.

We need higher mortgage rates to cool the housing market

2020-2024 will have the best housing market demographics and the lowest mortgage rates ever recorded, which could accelerate real home prices too quickly.

Mortgage

Fannie Mae identifies new fake employers being used on mortgages

Five California companies appear to not actually exist

The number of fake employers showing up on borrowers’ mortgages is growing.

Earlier this year, Fannie Mae issued a warning to lenders after identifying more than 30 companies that appeared to be fake that were showing up on borrowers’ mortgage documentation as their place of employment.

The 30 companies were generally located in the Southern California and Los Angeles County areas. But the wave of fake employers spread throughout California, as Fannie Mae later called out 10 more potentially fake companies located in Northern California, including some in Silicon Valley.

Now, Fannie Mae is issuing another warning, telling lenders that it has found five more potentially fake employers in the state of California.

The newly identified potentially fake employers are:

  • BTR International, located on S. Olive in Los Angeles, CA
  • Building Blocks Learning Center, located on Calabasas Rd. in Calabasas, CA
  • Digicox Printing Material, located on Sherman Way in North Hollywood, CA
  • Volt Temp Distributors, located on Gladys Avenue in Los Angeles, CA
  • Western Law Group, located on W. Glenoaks Blvd. in Glendale, CA

According to Fannie Mae, there are a series of red flags that lenders should be on the lookout for on loans that could include a fake employer or other potential mortgage fraud issues, including:

  • TPO / broker loans
  • Originated 2015–2018 (present)
  • Employment (occupation) does not “sensibly” coincide with borrower’s profile (age or experience)
  • Borrower on current job for short period of time
  • Prior borrower employment shows “Student”
  • Starting salary appears high
  • Purported employer does not exist
  • Employer’s purported location cannot be ascertained
  • Paystub templates are similar for various employers across other (involved) loan files
  • Paystubs sometimes lack typical withholdings (health, medical, 401(k), etc.)
  • Gift letters are substantial and are not (or cannot be) supported through re-verification

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