CUNA Mutual Introduces Fraudulent Mortgage Loan Doc Insurance Posted by AVCU on 4:50 PM

CUNA Mutual Group is introducing the credit union industry’s first fraudulent mortgage loan documentation coverage as part of a new release of its Bond policy. This brand new coverage will help credit unions manage losses from increasing fraudulent acts committed by residential mortgage borrowers. Fraudulent Mortgage Loan Documentation (FMLD) coverage applies to material misrepresentations, through alterations by the borrowers, on certain residential mortgage lending documents used by credit unions to make lending decisions. These include verifications of income and employment, offers to purchase and/or appraisal reports. It serves a growing need. A recent report by the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) indicates mortgage fraud reached an all-time high in 2008, with more than 64,000 reported incidents.