I have been hoping all year that I would have a better closing article for 2010. But, unfortunately, fraud is still high on the list of topics in the mortgage industry.

CoreLogic estimates the 2010 fraud loss will be $11 billion! What seems like good news, is it is down from the 2009 number of $14 billion. Unfortunately, just looking at the numbers can be deceiving. CoreLogic said that the probable fraud rate increased by 20% due to volume increases.

What I find as a sad statement is that some are saying fraud is a crime of necessity where it used to be a crime of opportunity. Necessity? Fraud? The tough business environment is blamed for this; I, personally, don't see any excuse or good argument for anyone to commit fraud - in the mortgage industry or any other industry for that matter.

One huge area that is suspect is the information being entered into the automated underwriting system doesn't match the data in the loan file. It is yet to be determined if the discrepancies are carelessness or delibarate omissions of specific data. Two additional suspects are percentage rate calculation and proper appraisals.

The good news is that problems will be detected earlier - before the loan is issued - rather than after the fact. Quality control is becoming more stringent as processes are put in place. And there are plans for the mortgage industry to share information, which will enable the fraudsters to be caught much earlier.

As always, it is best to work with someone you know, trust and feel comfortable with - a leader in the mortgage industry. When you choose a professional mortgage broker, you can be assured that you won't be taken advantage of. Grandview Lending is here to work WITH you for all of your mortgage needs.

Happy New Year; we wish a successful, abundant 2011 for all!