A look at Biden’s first week in office

This episode reviews last week’s inauguration of President Joe Biden, examining which housing issues the new administration has already taken action on.

Biden’s executive order will extend foreclosure moratorium

President Biden revealed his plan to sign 17 executive orders his first day in office, including am extension of the eviction and foreclosure moratorium to at least March 31.

If consumers aren’t holding lenders back, then who or what is?

The challenge for lenders and investors is understanding how to meet borrowers where they are without layering on risk or getting bogged down in third-party intermediation.

HomeBridge’s Brian White on diversity at a practical level

HomeBridge's Brian “Woody” White discusses ways to increase diversity within the housing finance industry.

CoronavirusReal Estate

Fraudulent rental applications have spiked during pandemic

And online applications have made it easier

Rental application fraud has risen 9% month over month since COVID-19 hit, according to a report from real estate tech company Snappt.

Snappt surveyed 100 residential property managers who manage more than 1,000 units and found that 66% had been victimized by fraudulent applications.

Fraudulent applications often lead to evictions – more than 20% of the managers estimate almost one in three evictions are due to fraudulent applications. Evictions come with a heavy cost – averaging $7,685 for those surveyed.

“If someone understands the law, they can stop paying and live rent-free for six months while we work to evict them,” said Chad Vasquez, general manager of Circa LA.

A typical property manager reports 15% of their online rental applications show proof of obvious fraud, while the respondents estimated that an additional 10% of fraudulent applications get processed unnoticed.

“The increasing number of self-employed applicants, a move to online rental applications and the increasing availability of tools to fraudulently alter financial documentation all make the problem more common,” said Daniel Berlind, CEO and co-founder of Snappt.

In addition to the costs associated with having to evict bad tenants, the top problems resulting from fraudulent rental applications include costs associated with physical damage to the property, missing out renting to good tenants, criminal activity at the property and loss of reputation.

Leave a comment

Most Popular Articles

Biden’s executive order will extend foreclosure moratorium

President Biden plans to sign 17 executive orders his first day in office, including an extension of the eviction and foreclosure moratorium.

Jan 20, 2021 By

Latest Articles

Biden calls on HUD to address racial equity

President Joe Biden’s Tuesday orders include a memorandum that directs HUD to both mitigate racial bias in housing and advance fair housing laws.

Jan 26, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please