FRAMINGHAM, Mass.--(Feb. 5, 2007) --Leading
independent research and advisory firm, Financial Insights
(
www.financial-insights.com),
an IDC company, today announced the release of a report
examining the results of new research into emerging fraud
within home equity loan portfolios. Essential guidance is
provided to lenders on how to recognize and manage this
growing threat.
"Mortgage and home equity loans are similar products," states
Christine Pratt, research director for Consumer Banking
and Credit and the author of the report,
Combating Fraud
in Home Equity Lending: The Enemy of My Enemy Is My Friend.
"The real differences are in the lien position of the mortgage
and in the way that the customer gains access to the funds.
It stands to reason then that fraud in home equity lending
would look very much like fraud in mortgage lending. In
most cases that is true, but what isn't true is that home
equity lenders are not always mortgage lenders, or that
they know how to defend against fraud risk."
Mortgage fraud losses are climbing at an alarming rate as the attached figure, titled "Value of Mortgage Fraud Losses and Number of Cases Reported, 1999-2005," shows, and this is not good news for mortgage or home equity lenders. The report advises lenders of potential portfolio dangers, for example in re-discovered products such as reverse mortgages or in checking account fraud, and then details experienced third-party providers with solutions that may help.
Security concerns continue to be top of mind for all IT executives and are included in Financial Insights' annual Top 10 reports, which highlight strategic IT initiatives financial institutions are undertaking in 2007. In addition, Financial Insights Top 10 Webcasts are available in February as follows:
- Asia/Pacific Top 10 Strategic Initiatives for Insurance Webcast - February 6, 2007
- Worldwide Top 10 Strategic IT Initiatives for Banking – February 7, 2007
- Worldwide Top 10 Strategic IT Initiatives for Risk Management – February 8, 2007
- Worldwide Top 10 Strategic IT Initiatives for Capital Markets – February 14, 2007
The full report;
Combating Fraud in Home Equity Lending: The Enemy of My Enemy
Is My Friend (FIN204930, Financial Insights) is available
to qualified members of the media. For your report copy
or to register for one of the Top 10 webcasts contact Deborah
Stark, 508-935-4318 or via email dstark@financial-insights.com
For more information on purchasing the report, contact sales@financial-insights.com.
SOURCE: Financial Insights
