We have issued a new fraud alert identifying 34 apparently fictitious employers being used on loan applications in Southern California. View the fraud alert and other resources on our Mortgage Fraud Prevention page.
Misrepresentation of Borrower Employment Scheme
Fannie Mae’s Mortgage Fraud Program (MFP) alerts the industry to potential and active mortgage fraud scenarios. This alert relates to a scheme involving misrepresentation of borrower employment.
Where?
Southern California, Los Angeles County
Loan common denominators / characteristics
Fannie Mae’s Mortgage Fraud Program has identified several entities listed on loan applications as places of employment that appear to be fictitious. The following list contains 34 entities / businesses that were listed as the borrower’s purported place(s) of employment but whose existence Fannie Mae could not confirm. This list is as of May 22, 2018, and is subject to change:
| A1 Data Programming E Dalewood St West Covina CA |
| AMR Global Research Bradley Rd. Sun City CA |
| Axis Programming Science Dr. Moorpark CA |
| BA Transport McDivitt Drive Bakersfield CA |
| Bella Donna Academy Topanga Canyon Blvd Chatsworth CA |
| Bridge Worldwide Financial Agoura Road Calabasas CA |
| Buenaventura Construction |
| Group Westinghouse Pl. Reseda CA |
| Calimex Distributors Laurel Canyon Blvd Sun Valley CA |
| Camarillo Home Healthcare Sherman Way Reseda CA |
| Cayton Systems Ventura Blvd Encino CA |
| Civa Home Solutions Ventura Blvd Encino CA |
| Concord Concrete Parthenia St Northridge CA |
| Core Natural Beauty Products Constellation Rd Valencia CA |
| Dataplus Communications Eton Avenue Chatsworth CA |
| Direct Choice Financial N. Sepulveda Blvd El Segundo CA |
| Elite Restaurant Management Colorado Blvd Los Angeles CA |
| Emtron Software Developers Science Dr Moorpark CA |
| EZ Maintenance Owensmouth Ave Granada Hills CA |
| Green Energy Development Sherman Way Reseda CA |
| Jana Collins Cosmetics Comanche Ave Chatsworth CA |
| LA Best Restaurant Group Lurline Avenue Chatsworth CA |
| Master & Media Riverside Dr North Hollywood CA |
| Med Plus Medical Billing Services Green Valley Circle Culver City CA |
| MJ Home Health Services Ventura Blvd Tarzana CA |
| OC Media Developers Main Street Irvine CA |
| Ocean Trade Imports and Exports W Ocean Blvd Long Beach CA |
| Ontic Global N. Brand Blvd Glendale CA |
| Pacific Logistics International S. Eastern Ave Commerce CA |
| Power Pack Consultants Wilshire Blvd Los Angeles CA |
| Prime Medical Group La Venta Rd Westlake Village CA |
| Sentryx Media & Motion Pictures Eton Avenue Chatsworth CA |
| Shield Technologies W. Olive Avenue Burbank CA |
| Tech Direct Mason Avenue Chatsworth CA |
| USA Extended Auto Care Ventura Blvd Encino CA |
Red flags
- TPO / broker loans
- Originated 2015–2018 (present)
- Employment (occupation) does not “sensibly” coincide with Borrower’s profile (age or experience)
- L.A. County, CA (geographic common denominator)
What can lenders do?
Prudent origination, processing, and underwriting practices should include looking for red flags in the loan documents that raise questions about the transaction. Verify that the borrower’s place of employment actually exists and obtain supporting documentation. If one of these entities is disclosed as the borrower’s place of employment, exercise due diligence in reviewing the entire loan file. Lenders must exercise caution in these situations and take appropriate steps to prevent the institution from being the victim of fraud.
If suspicion of fraud exists
- Follow established policies and procedures within your organization and the Fannie Mae Selling Guide
- Follow the “Report Mortgage Fraud” instructions on the Mortgage Fraud Prevention web page.
More general steps lenders can take to detect and prevent fraud
- Know your third-party originators/brokers.
- Be “fraud smart” by educating your staff.
- Establish a zero tolerance fraud policy.
- Share information.
- If the loan doesn’t make sense, don’t do it!
- Report any suspicious activity through established channels.
Watch for further “Fraud Alerts” and potential updates to this fraud ring by monitoring the Mortgage Fraud Prevention web
page.