“Borrowers don’t have the savvy to know which documents to falsify. They’re often coached by loan officers or brokers,” says Robert Simpson, president of IMARC, a Newport Beach (Calif.) mortgage-fraud investigator. Banks are starting to realize that this puts them at risk. “Banks used to say that a certain amount of fraud is the cost of doing business. Not anymore. It’s costing them a lot of money, and they’re finally going after it,” says Simpson.

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