Freddie Mac: How to Avoid Mortgage Fraud

Investor Update
April 4, 2016

Expert offers tips on how to avoid getting conned

It’s spring time and that normally means homeowners are either searching for their perfect home, or are in the process of purchasing it. But according to Freddie Mac’s Financial Fraud Investigation Unit, it’s also a time for home shoppers to fall victim to real estate fraud.
 
In fact, Joan Ferenczy, vice president in the Freddie Mac fraud department, said in a blog post that, because people write checks and sign complex legal documents, it is so important to know how to protect from mortgage fraud.

Here are a 3 suggestions on how to avoid mortgage fraud, for the full story, visit her blog on Freddie Mac.
 
1. Mortgage application
 
First, never sign a mortgage application until you are certain the blanks are filled in correctly. Leaving blanks on a signed document makes it easy for a fraudster to change key information about you (think income and assets) or the amount you are borrowing, the interest rate you agree to pay, or even whether the interest rate is fixed for the life of the loan or will adjust. The best way to protect yourself from a loan you can’t afford is to make sure the loan application is complete and accurate before you sign it.
 
Encourage home shoppers to resist temptation to either exaggerate their income, length of employment or any other information someone says will help their loan approved. It is also important that they be in contact with their loan officer on any life changing events.
 
2. Meeting in person

Next, meet your loan officer in a secure location, like your home or their place of business. Don’t give your mortgage application in, say, a coffee shop or food court where a stranger with a cell phone could take a picture of your bank statement, tax returns, or income statements. This is an important tip for protecting yourself from identify theft.
 
3. False advertisement

Beware of ads promising to erase bad credit records and/or create new credit identities so people can get new credit cards or mortgage loans and start spending again. That’s an appealing pitch to someone eager to buy a home. But rebuilding credit takes time and patience, a good household budget, and paying your bills on time. People who fall prey to credit repair scams lose their upfront fees, don’t improve their credit, and sometimes run afoul of the law.

Source: HousingWire (full article)

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties