If You’re Going To Tighten Mortgage Lending Rules It’s Time To Fix Mortgage Income Document Fraud NOW
Seriously @OSFICanada and @OSFIBSIF_leader while you are consulting with the Big Banks and preparing to tighten Mortgage Underwriting Rules in the Summer or Fall. It’s time to INSIST that the CRA provides a link to verify incomes because if OSFI’s goal is the integrity of our Banking System, then why the heck isn’t the foolproof solution to eliminate a widespread serious fraud a priority for the Bank Regulator. This has to happen NOW! Because the more a Regulator tightens mortgage rules, the greater the motivation to game the system.
We watched @cbcmarketplace detail widespread income document fraud last Fall. How much bigger will it grow as new mortgage rules tighten lending versus income? It will grow. So @OSFIBSIF_leader now is the time and it’s EASY.
Meet with the boss @cafreeland and have her tell CRA the time is NOW to supply a Secured Link to Banks and other Lenders to confirm that declared income matches CRA records.
SO SIMPLE, but it is never a priority. You cannot have tighter lending rules without making sure the ability to game those rules is UNTOUCHED. Do the right thing. End Mortgage Document Fraud NOW!
– Ron Butler
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