Part 5/8:
When addressing the increase in mortgage fraud, Frankel reassures that while the one-in-109 statistic is concerning, it is not yet alarming enough to indicate an impending financial crisis. The predominant type of fraud involves income misrepresentation, with individuals manipulating pay stubs to inflate their perceived financial standing. Unlike in the past where it was easy to obtain a mortgage, current credit standards, dictated largely by Fannie Mae and Freddie Mac, remain relatively stringent.