Friday, November 07, 2008

National Underwriter Property & Casualty

Mortgage Insurance Fraud Seen Spurring Policy Cancellations: "According to Susman Godfrey, grounds for rescission cited by mortgage insurers include cases where loan originators and underwriters approved loans using grossly inflated statements of borrower income and assets, fraudulent employment and occupancy information, and false debt-to-income ratios. There are also cases where banks and other entities created pools of bad loans, and then shifted losses to mortgage insurers by lying about the quality of the loans, the firm noted."
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Thanks to Fred Pilot for this link.

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