A national mortgage field inspection firm working for Bank of America doctored mortgage inspection reports and photos for about five years. The Secret Service investigated and a court sentenced the perpetrator (he plead guilty) to eight years in a federal prison in Virginia. Bank of America says they were damaged to the tune of over 12 million dollars. This arrest and conviction is the only one I am aware of in a 22-year period. That one conviction was for inspection fraud that occurred over a long 5-year period.
This is not an isolated case. Such fraud is happening very day in the mortgage segment of the field services industry. Computer software is available that will batch process and remove date time stamps on photos. Software is available that will batch add date time stamps to photos. Software is available that will batch scrub and add EXIF metadata to digital photos. Some mortgage field service firms today are using temporary workers to take screen shots of photos to remove EXIF metadata and replicate photos. This is reported in a blog which I am sure that Government inspector generals (IG’s) read. The Congress has closed their eyes on such mortgage fraud. No one seems to care.
The reason that there is so much fraud in the mortgage segment of the industry is because the fraud is over looked. Quality assurance is almost nonexistent. The banks don’t seem to care … the Government does not seem to care. Photo fraud was difficult in the days of Polaroid photos. Today, doctoring electronic photos is so easy. A Google search will provide the details. Today, software costing less than $50 will allow anyone to batch erase/add date time stamps and batch erase/add EXIF metadata. Reusing digital photos has been happening every day since the days when the use of Polaroid photos ended.