Small Lenders and Brokers May be Required to Check for Fraudulent Activity

By Kyle Chezum Updated on 12/6/2010

12/06/2010

A new proposal may obligate independent lenders and mortgage brokers to submit reports to the Treasury Department when certain key indicators turn up that may signify fraud or money laundering.  These institutions would create anti-fraud programs and act as first contact points to sniff out fraud and money laundering schemes.

John Mechem, spokesman for the Mortgage Bankers Association, supports the proposal and hopes to see it implemented as soon as possible.  “It’s an effective enforcement tool and helps route out fraud against our members,” he said.

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