Mortgage Fraud Awareness
Protect Your Clients. Protect Your Business. Know the Signs.
Mortgage fraud is one of the most serious threats facing the housing industry — and mortgage brokers are often the first line of defense. As trusted advisors in the lending process, NAMB members are uniquely positioned to recognize red flags, educate clients, and help prevent fraud before it causes irreparable harm.
This resource hub equips you with the tools, knowledge, and materials you need to stay informed and keep your clients safe.
Fraud Awareness Overview
Understanding the Most Common Types of Mortgage Fraud
Mortgage fraud takes many forms, and staying ahead of it means knowing what to look for. Below are the most frequently encountered fraud schemes in today's market:
Wire Fraud
Cybercriminals are increasingly targeting real estate transactions by intercepting communications and redirecting wire transfers to fraudulent accounts. Always verify wiring instructions through a confirmed phone number — never rely solely on email, even if it appears to come from a known contact.
Identity Theft
Fraudsters may use stolen personal information to apply for loans, purchase property, or take out equity on homes without the owner's knowledge. Brokers play a critical role in verifying borrower identity and flagging inconsistencies in documentation.
Appraisal Fraud
This occurs when a property's value is intentionally inflated or deflated to benefit a party in the transaction. Inaccurate appraisals distort the market and can expose both borrowers and lenders to significant financial risk.
Occupancy Fraud
A borrower misrepresents their intent to occupy a property as a primary residence in order to obtain more favorable loan terms. This type of fraud is often subtle but carries serious legal and financial consequences.
Fraud prevention and verification controls for mortgage loan originators
Complete NAMB's Mortgage Fraud Awareness Course...Expand Your Knowledge; Protect Your Borrower
Fraud is evolving -- and so must you.
In this course, you'll learn to spot the red flags hiding in income documents, asset statements, identity verification, occupancy claims, appraisals, and investor transactions before they become your problem.
You'll sharpen your verification toolkit -- from tax transcript reviews and SSN checks to document consistency analysis and employer confirmation -- and get up to speed on today's most dangerous threats: wire fraud, business email compromise, and AI-powered impersonation schemes.
You'll also walk away knowing exactly how to document, preserve, and escalate suspicious activity through the right channels. Because protecting your borrowers, your license, and your business starts with knowing what to look for.
As Seen on Good Morning America
It Can Happen to Anyone — Even the Most Careful Clients.
When a Southern California couple nearly lost their entire down payment to a wire fraud scheme, their story became a national wake-up call. The fraudsters used a business email compromise tactic — sending a near-perfect duplicate of an email from their mortgage broker with just one subtle difference in the sender's address — to redirect their funds to a fraudulent account. By the time the couple realized what had happened, the money was gone.
Their story, featured on ABC's Good Morning America, is a stark reminder that mortgage fraud doesn't just target the uninformed. It targets the unsuspecting.
NAMB President Kimber White appeared on the program with a simple but critical message for homebuyers: "Before you send anything, pick up the phone. Call your mortgage broker, call your Realtor — trust and verify."
As a mortgage broker, you are your clients' most trusted guide through one of the largest financial transactions of their lives. Use the resources on this page to help them understand the risks, recognize the red flags, and take the right steps before it's too late.
The NAMB Mortgage Fraud Awareness Social Media Kit gives you everything you need to start those conversations and stand out in your market.
What You Get
1.
Professionally Designed Social Media Graphics
2.
Done-For-You Social Media Posts
3.
Mortgage Fraud Prevention Flyer
4.
Realtor Presentation (PowerPoint)
5.
Industry Relevant, Actionable Content
- Post consistently on social media
- Share graphics with your clients before closing
- Send the flyer to your database
- Present to Realtors and referral partners
- Use as a conversation starter in every transaction
This kit is designed to help you stay visible, valuable, and proactive.
