Mortgage fraud on the decline in Canada, Genworth CEO says
Despite the global financial crisis, fraudulent applications have become less of a problem for the industry thanks to insurers, lenders and mortgage brokers being highly trained in spotting suspected fraud.
Genworth's CEO has mentioned that due to new technology and better training, mortgage fraud has been on the decline in Canada. Typically, overstated income is one of the most common types of mortgage fraud, but thanks to more strict income verification, highly trained underwriters and third party tools on the lenders' part, suspected fraud deals have been turned away.
Despite the global financial crisis, fraudulent applications have become less of a problem for the industry thanks to insurers, lenders and mortgage brokers being highly trained in spotting suspected fraud.
Genworth says its newly written mortgage insurance premiums grew by 28 per cent in the second quarter compared with the same period last year. This is due to a strong housing market in Ontario. Its delinquencies in oil-sensitive regions such as Alberta and Saskatchewan haven't taken a sharp increase upward despite the harsh times these locations are experiencing, thanks to tightening their underwriting standards in these locations.
Growth's weakest market is located in the outlining areas of Quebec and Atlantic Canada. Not surprisingly, a bulk of Genworth's business is located in Toronto and Vancouver, thanks to many first-time home buyers.