What sort of job has the industry done to police itself and combating mortgage fraud?

I think the industry is doing a good job but it could do better. One of the things it has done well is the requirement of licensing of loan originators. I was happy to see the recent Federal Deposit Insurance Corporation (FDIC) requirement for loan officers who work for banks to be held to the same standards as non-banks at lease with registration. Fannie Mae’s recent announcement about having another 4506-T signed at closing to verify or re-verify tax transcripts is yet another positive step in eradicating mortgage fraud at the closing table. Training of the Federal Bureau of Investigations (FBI) staff in mortgage fraud investigation and advancing the technology of the U.S. Department of Housing & Urban Development (HUD) so that it can be equal to the large lenders as per training and technology, are another two good things being done in the combating of mortgage fraud. Enforcing existing appraisal policies through the Home Valuation Code of Conduct (HVCC) has improved the quality of loans by 16 percent according to Fannie Mae. Something as simple as changing underwriting requirements has deterred mortgage fraud as well.

The Mortgage Bankers Association (MBA) is extremely proactive in working with industry professionals and vendors in communicating actions on Capitol Hill and going back to the professional and getting feedback on what works and what needs improvement. In 2009, MBA had several conferences, such as the Fraud, Quality Assurance and Residential Underwriting, Legal and Regulatory, and of course, their national conference where committees met to discuss mortgage compliance and mortgage fraud and what the industry can do to improve in the department of policies, procedures, technology and lobbying to police the industry. The MBA has listened to the voice of the mortgage professionals who work directly with mortgage compliance and mortgage fraud and has coordinated their unified efforts.